🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Italy's competition watchdog probes top banks over debt support measures

Published 06/11/2020, 01:20 PM
© Reuters.
UBI
-
ISP
-
CRDI
-
BMPS
-
BAMI
-

MILAN (Reuters) - Italy's antitrust regulator said it was probing four financial firms, including the country's top two banks, for allegedly withholding information and imposing unnecessary conditions on borrowers who wanted to access coronavirus support measures.

The regulator said UniCredit (MI:CRDI), Intesa Sanpaolo (MI:ISP), Banca Sella and consumer credit group Findomestic were suspected of making it harder for businesses and households wanting to access state measures to help them through the pandemic crisis.

In a statement on Thursday, the regulator also said the banks may have failed to provide clear information regarding the eventual increase in interest payments stemming from payment suspensions under debt holiday schemes.

The authority said it was exercising "moral suasion" towards another 12 financial institutions - including state-owned bank Monte dei Paschi di Siena (MI:BMPS) and rivals UBI Banca (MI:UBI) and Banco Popolare (MI:BAMI) - after finding similar shortfalls in the information provided to customers about the timing and cost of the loans.

Reuters was unable to contact Banca Sella and Findomestic and the other banks were not immediately available for comment.

Italian banks have come under fire for delays in granting state-backed loans under liquidity schemes which the government had said could unlock at least 400 billion euros in new financing.

Paolo Angelini, head of supervision at the Bank of Italy, told a parliamentary hearing on Thursday that the central bank had written to a group banks to check why they lagged behind the industry median in meeting requests for state-backed loans.

Angelini said the situation had improved after a slow start and, by the end of May, 61% of requests for fully-guaranteed loans for small firms had been met compared with just 33% two weeks earlier.

He said loans to non-financial companies had increased by 22 billion euros between March and April, compared with 27 billion in Germany, 59 billion in France and 35 billion in Spain.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.