All eyes of the market on the ECB but not only for Draghi's moves (which will take place tomorrow) but for the merger between Bpm and Banco Popolare. The top management of the two Italian banks are in Frankfurt today to illustrate the latest improvements in the field of bank non-performing loans and governance and hope to bring home the final go-ahead for the merger.
The marriage between Banca Popolare di Milano and Banco Popolare are the first in the pipeline after the historic reform of cooperative banks implemented in a few months by the Renzi government, but they are also the first to be examined by the European Supervisory Authority. Until now, the ECB's supervisory authorities have stalled by asking for continuous improvements to Bpm and Banco Popolare, but now it's time to decide, because if there weren't the green light from Frankfurt, the merger would risk skipping. And the Supervision of the ECB would assume the heavy responsibility.
