According l 'Fitch rating agency the reform of cooperative banks launched by the Renzi government via decree could have a positive effect in the medium term for the large institutions involved, strengthening their governance and making consolidation in the sector easier.
In a report, Fitch points out that the current governing structure of the populars is vulnerable to interference from politicians and lobbies of various kinds, with crucial decisions often hampered by fragmented shareholdings and rigid voting mechanisms.
Furthermore, Fitch points out that the Italian banks most in difficulty during the last crisis were those with the weakest corporate governance as in the case of popular banks, which showed sharp declines in profitability.
According to the agency, the transformation into a spa could reduce these inefficiencies, even if "these medium-term benefits will most likely not be reflected in immediate rating actions".
