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Italy banks 'weathered crisis' says Bank of Italy

Wrote down bad loans with loan-loss provisions

Redazione Ansa

(ANSA) - Rome, July 9 - The deputy chief of the Bank of Italy told the Senate Thursday the Italian banking system has weathered a rough patch without a public bailout.
    Italian banks have been weakened by the financial and sovereign debt crises, a long recession, and market tensions, Fabio Panetta said.
    However, they have "autonomously weathered this impressive succession of negative shocks, under the guidance of the Bank of Italy," Panetta said.
    They "did not rely on significant public intervention" thanks to an exceptional rise in loan-loss provisions - equal to 53 billion euros in 2012-2013 and 26 billion euros in 2014.
    EU banking union will become fully operational in 2016, and its most innovative measure will be the so-called bail-in, meaning that losses will be borne by shareholders and creditors.
    "The possibility that small savings accounts will suffer is very remote," Panetta said.
    Accounts under 100,000 euros will be protected by the Interbank Deposit Protection fund, he said.
   

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