If large financial institutions in Italy are able to survive the corona crisis, then small organizations can cease to exist.
This is reported on Wednesday, April 15, by the Bank of Italy.
In particular, central bank chief observer Paolo Angelini and his director for financial stability, Giorgio Gobbi, called on the government to consider the possibility of public funding to facilitate the merger of financial institutions. They set out their initiative in a proposal prepared for parliamentary hearings.
“For banks that have already encountered problems, there may not be enough existing government measures and supervisory actions to allow them to withstand the economic consequences of the pandemic”, – the communique says.
The Bank of Italy warns that the crisis caused by the coronavirus may lead to an increase in the share of unpaid bank loans. At the same time, Italian business will need about 50 billion euros of additional financial assistance in the second quarter of 2020.“I’m scared I can’t even sell it”, – a Texas oilman told how an entire U.S. industry is collapsing