Marche, Etruria, Carife and CariChieti banks: for the presidency of the four new bridge banks that will be created with the rescue of the institutions decided on Sunday by cabinet, the Bank of Italy indicated Roberto Nicastro, until two months ago general manager of UniCredit. He will chair the boards of directors of each bridge bank whose boards of directors will be appointed by the Resolution Authority.
The capital of the four new entities, which will receive the positive assets of the banks subject to the rescue, was reconstituted for each in an amount equal to approximately 9% of risk-weighted assets. The Nuova Banca Marche has a capital of 1 billion, the new Banca Etruria of 400 million, the Nuova Carife of 200 and the Nuova CariChieti of 100 million.
The old banks, emptied of assets and liabilities, residual containers of losses and their coverage, are placed in compulsory administrative liquidation.
THE EU SAYS YES
The decree of the Italian government has obtained the green light from Brussels. For the European Antitrust resorting to the National Resolution Fund for the four banks, whose combined share represents around 1% of the Italian market, "minimizes the need for state aid without unduly distorting competition" while fully protecting deposits. The transfer to the bridge banks of all the assets and liabilities of the banks, except for the remaining equity and subordinated debt, "will stabilize the activity previously carried out by the four banks while protecting depositors". The goal is to sell the bridge banks through "an open and non-discriminatory process in order to maximize the selling price"
THE AGREEMENT ACCOUNT
We also learn that the pro-rata intervention of the Intesa Sanpaolo group is worth a total of 1,7 billion in the resolution process of Banca delle Marche, Banca Popolare dell'Etruria e del Lazio, Cassa di Risparmio della Provincia di Chieti and Cassa di Risparmio di Ferrara.
In detail, informs a note from Intesa Sanpaolo, the disbursement of a loan to the Resolution Fund for approximately 780 million euro is envisaged, corresponding to the pertinent portion of a total loan of 2.350 million euro, which will be repaid during the month of December 2015 with the contributions that will have been paid to the Fund by the Italian banking system.
Then there is the disbursement of a loan in favor of the Fund for approximately 550 million euros, corresponding to the pertinent portion of a total loan of 1.650 million euros, short-term (maturity 18 months minus one day), against of which the Cassa Depositi e Prestiti has undertaken a commitment of financial support in the event of inadequacy of the Fund on the date of expiry of the loan.
Lastly, there are charges associated with the payment of the extraordinary contribution to the Fund of approximately €380 million before tax, which will be recognized in the income statement for the fourth quarter of 2015, in addition to the approximately €95 million relating to the ordinary contribution for 2015 already expensed in the first semester of the year.
