It is not the number that counts, but the solidity. One year from today, the cooperative credit banks will have to be reunited into groups: not necessarily in a single holding, even in multiple entities, provided that each complies with the requirements imposed by law (above all, a net worth of at least one billion). This is the position of the Bank of Italy on the most controversial point of the reform of the CCBs. “Of course, we will not be able to reach 30 and perhaps not even five – explains Carmelo Barbagallo, head of the Supervision of Via Nazionale -, but our considerations are only of a prudential nature. The groups could also be two or three, the important thing is that they are strong enough”.
From Bank of Italy - which today published the rules for implementing the reform - there is therefore no veto on the constitution of the Cassa Centrale Banca Group, the Bcc union promoted by the Trentino people and announced last month. In the post-reform scenario they will be the ones to challenge Iccrea, the parent company that in the intentions of Federcasse it was to be the sole holding company nationwide.
But the games aren't over yet. In theory, the deadline for submitting applications for the constitution of groups expires on 3 May 2018, but it is probable that the picture will be clear already at the beginning of next year and that at that point the new holding companies could come to life within 6-12 months.
At the moment, the only certainty is that only three institutes have chosen the so-called way-out, or the possibility of evading the obligations of the reform by becoming a Spa. One of these, the Bcc of Cambiano, will flow into an existing Spa (60 working days should be enough for the authorizations), while the other two, Cassa Padana and Chianti Bank, will form a new institution (with much longer times, because a new banking license will be needed).
Once all these transformations have concluded, the Italian banking landscape will be much less crowded. According to numbers provided by Bank of Italy, today there are 355 CCBs out of a total of 486 institutes active in our country (about 73%): this means that, once the reform has been implemented, the total number of banks will collapse to 120 or a little more.
Via Nazionale explains that the new structure, in addition to bringing advantages in terms of efficiency and assets, will allow the CCBs in crisis to find new capital much faster today thanks to the support of the parent company. This in turn can be refinanced by each bank of the group with the capital in excess of the mandatory capital requirements. Not only that: it will also be able to turn to the market, provided that the majority of its shares remain with the CCBs (unless a derogation is granted by the Treasury for stability reasons).
The holding company will have management and coordination powers over the affiliated banks, including the power to appoint and remove the majority of the members of the administrative and control bodies of institutes. Bankitalia will also allow sub-holdings to be set up, but only with an operational support function: they will not have to transform themselves into autonomous power centers that could come into conflict with the parent company.
Finally, one of the most slippery aspects: the “eligibility criteria” on the basis of which to choose the top management of the holding company. The central institute refers the problem to the drafting of the statute, but imposes that the chosen ones are distinguished by "professionalism and competence". Which, for a company operating on the market, also means speak (well) English. And maybe for someone it will be a problem.
