Premier Matteo Renzi's cabinet
on Tuesday approved "historic" measures that will give the
country's biggest 10 cooperative, or 'popolari' banks 18 months
to change their ownership structures.
The changes had been rumoured for several days, driving up
the stock-market value of some of the biggest 'popolari' banks
where current rules allow every shareholder to have one vote,
regardless of the size of their investment.
Renzi said the 10 biggest of these banks, with assets above
eight billion euros, must change their ownership structures and
become an SpA, or publicly traded corporation.
"It is an historic moment," said Renzi after a cabinet
meeting Tuesday that also approved a new 'investment compact'.
Renzi said that smaller banks will not be affected by the
change, but added that in general, Italy's banking sector needed
reform that should include more consolidation.
"We have too many bankers and we deliver too little
credit," Renzi said, shortly after a national business
association reported that small- and medium-sized businesses in
Italy have seen credit availability drop dramatically since
2010.
The measures in the decree "will strengthen the Italian
banking system which will go better and better as the recovery
gets underway," said Economy Minister Pier Carlo Padoan.
The decree must be approved within 60 days to become law
and includes measures aimed at stimulating domestic investment
while making Italy more attractive for foreign investors.
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