With the punctuality of a Swiss watch, the Bank of Italy yesterday published on its website the implementing decrees of the reform of the major cooperative banks which will now have 18 months to transform themselves into joint-stock companies: they will have to do so no later than mid-December of 2016.
There are many innovations in the new regulations of Via Nazionale for the Popolari which concern in particular the right of withdrawal and the reimbursement of the members of the Popolari which are being transformed into joint-stock companies and the characteristics of any controlling holding companies of the new joint-stock companies.
The Bank of Italy confirms that the shareholders of cooperative banks that will transform into joint stock companies have the right to exercise the right of withdrawal but specifies that the consequent redemption of the shares may be limited if the stability of the bank itself is at stake. In this regard, supervisors will have to consider “the overall financial, liquidity and solvency situation” of the bank in question. In other words, the refund limitation can only be triggered under certain conditions.
The regulatory notes on the controlling holdings of the new spas are also very interesting. The Bank of Italy is always in favor of innovation in banking structures but with an eye to capital solidity and transparency and for this reason it puts its hands forward on any post-reform Gattopardesque designs. In line with the spirit of the reform desired by the Renzi government and openly supported by the central bank, Via Nazionale specifies in the implementing decrees that a holding company controlled by former members of the old popular bank will not be allowed to control the new banking spa. In short; yes to any holdings but not to armor the old Popolari in new forms that have lost the shield of the per capita vote.
After the intervention of the Bank of Italy, all the conditions are now in place to open the season of mergers and combinations which will certainly enliven the next 18 months of the major Italian cooperative banks.
