Banca Popolare di Milano (BPM)
and Banco Popolare have complied with requests made by the
European Central Bank (ECB) for their merger to go ahead,
financial sources said Tuesday.
The ECB has effectively given its approval for the merger,
the sources said.
The central bank had said it wanted a strong capital
position for the new group as a key condition to approve the
planned merger.
The potential merger needs to create a new group with a
strong position in terms of capital and asset quality right from
the start as it would become the third-largest bank in Italy,
the European Central Bank said in a letter to BPM.
The ECB also set as conditions a multi-annual industrial
plan and a clear and efficient system of governance.
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