ECB says Paschi bank needs 8.8b euros of capital
Rome
THE European Central Bank (ECB) sees Italian lender Banca Monte dei Paschi di Siena SpA needing about 8.8 billion euros (S$13.3 billion) of capital to bolster its balance sheet after liquidity deteriorated this month.
The calculation is based on the results of a 2016 stress test, the Italian bank said in a statement late on Monday, citing two letters from the ECB that it received via Italy's Finance Ministry. While the ECB saw worsening liquidity at Monte Paschi between Nov 30 and Dec 21, it still considers the Italian bank to be solvent because it meets Tier 2 capital requirements. Paschi is seeking further information on the central bank's calculations.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Great Eastern chairman appeals for patience as shareholders fume over share price ‘disaster’
S&P Global first-quarter profit beats estimates on strong product demand
Thai banks cut rate for some borrowers after push from PM
Money laundering accused who faces 22 charges to plead guilty on May 14
BNP Paribas beats estimates as lower costs offset trading slump
Japan brokerage Daiwa’s Q4 profit more than doubles as markets recover