ECB says Paschi bank needs 8.8b euros of capital
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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.
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