Following a difficult few years, Italy's banks received a windfall from the central bank after the institution revalued its share 'capital', but other eurozone lenders claim that this gives Italian players an unfair advantage in the upcoming asset quality review.
The rollercoaster ride that Italy's Mediobanca has embarked upon since the crisis hit has seen the bank change its leadership, embrace retail banking, look to shed its equity in a number of leading Italian companies, and seek to no longer tie up its stakes in shareholder pacts. David Lane assesses the impact of these moves.
Italy's banks are struggling. Many are weighed down by bad assets and an oversubscription to government bonds, while those with relatively healthy portfolios are battling against a difficult economy and the series of downgrades that has recently befallen them. Despite this, CEOs at the country's largest institutions remain optimistic.
Huge public debts, lacklustre political leadership, teetering on the edge of an abyss... For Italy in 2011, read Italy in 1992, or Italy in the mid 1970s. The country has failed to learn the lesson of past crises and will have to make some unpopular decisions if it is to break this cycle.
Italian banks’ cautious approach has distanced them from the risky instruments and products at the heart of the economic crisis, yet prudence is more important than ever if they are to support the country’s ailing industries. Writer David Lane in Rome, Milan and Siena.
Under Antonio Fazio, Italy’s central bank seemed to have become an autocracy, with the now disgraced ex-governor its all-powerful boss. Governance will have to be a priority for the new governor, Mario Draghi. David Lane reports on the immense confidence rebuilding task ahead.Italy’s reputation for institutional excellence is, to put it mildly, far from the country’s strong point. Italian corruption scandals are legendary for involving a wide range of participants from all walks of life: business, politics and public bodies.