italian banks

Why Has Spain’s Banking Sector Rally Been Suddenly Cut Short?

The Spanish banking sector’s stock market rally has been suddenly cut short. The listed banks’ index  had risen over 45% since the minimum levels of June 2016 until the first week of January. But since then, it is seeing a correction. Two matters of concern for investors are the impact of the floor clauses ruling on the banks profit and loss account, as well as the problems of the Italian banks.

Monte dei Paschi bailout

Does Monte dei Paschi bailout comply with EU regulations?

The German authorities have come out en masse to criticise the public bailout the Italian government is planning for Monte dei Paschi. For many observers, this decision implies “direct public aid” which goes against the European directive on banking solutions and restructurings.

An Italian Take On Banking Crisis

Silvia Merler | The year 2016 has not been good to Italian banks. While resilient to the first wave of financial crisis in 2008, due to their low exposure to US sub-prime products and to the fact that Italy did not have a pre-crisis housing bubble, they have been suffering much from the euro sovereign crisis and the ensuing deteriorating economic conditions.

Europe’s Politics Are A Mess

Nick Malkoutzis via Macropolis | You are the outgoing British prime minister, responsible for calling a needless referendum whose result will – at best – lead to a painful realignment in your country’s relations with the rest of Europe and the wider world. What is your last action in Parliament? A moment of reflection about the decades of carefully constructed ties with EU member states and institutions that will now be overturned?

Monte Dei Paschi, An Example Of Italian Banks Solvency Problems

After the lack of success of private initiatives to help restructure Italy’s banking system, the government is now looking at how it can directly step in and help out the banks. Monte dei Paschi di Siena (MPS) is one of Italy’s biggest banks and the one which has the largest amount of toxic assets on its balance sheet by a long shot. At the end of the first quarter, MPS’ exposure to toxic assets was over 47 billion euros.

Italian Banks Will Not Go Back to Fundamentals Completely

UBS | After a few weeks spent focusing on systemic concerns, earnings should offer a chance to go back to fundamentals. We are cautious into results as the recent rally left both banks trading on richer multiples and thus with limited protection against a quarter where underwhelming earnings could lead to consensus downgrades.

The State Of Italian, German Banks Casts Doubts On Stress Tests Efficiency

The European Banking Authority (EBA) has finished defining the nature of the stress tests, as well as the scenarios the 51 largest European banks will be subject to in 2016. But given the situation of the Italian and German lenders, after the last stress test, there are more and more people who believe there is a certain amount of complicity going on to hide the real situation of many of the banks in both countries.