The Bank of Italy said Tuesday a
recent reform of cooperative banks (BCCs) was "on the whole
positive" but called for changes to the "way out" mechanism for
banks that do not want to sign up to the changes, potentially
undermining their effect.
The mechanism as is stands risks leading to the
proliferation of small groups and drawing sanctions from the
European Union for state aid, the head of the Bank's financial
oversight department Carmelo Barbagallo told the Lower House.
The reform needs to establish a clear deadline for BCCs not
wanting to join a single new holding company with 20 billion
euros of capitalisation to increase their net assets to over 200
million euros, Barbagallo said.
The 20% tax for banks that do not want to enter the holding
company is also less than total tax breaks received over time,
he added.
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