Italian populist parties want to reverse years of banking overhauls
‘These proposals are far from easy to implement and EU hurdles stand in the way’
Rome — Italy’s populist parties are planning an overhaul of its banking system that would reverse years of national and international regulatory policy as part of their governance plan. A 39-page draft programme published by Corriere della Sera, and confirmed by Five Star and League officials, contains plans to reimburse retail shareholders of banks that have been wound down; review the Basel banking accords, whose parameters "threaten the existence of Italy’s small and medium companies"; review the strategy for lender Monte dei Paschi di Siena; and separate investment banking from deposit-taking consumer banking. Italy last year was forced to nationalise Banca Monte dei Paschi di Siena after losses on nonperforming loans. The country has been struggling to fix a crisis legacy of soured loans that peaked at more than €360bn, and which have held back credit and an economic recovery. Luigi di Maio, leader of the anti-establishment Five Star Movement, and Matteo Salvini of the anti-imm...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.