The main entrance of the Monte dei Paschi bank headquarters is seen in Siena, Italy March 13, 2012. Photo: Reuters, Max Rossi
The main entrance of the Monte dei Paschi bank headquarters is seen in Siena, Italy March 13, 2012. Photo: Reuters, Max Rossi
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The leash is getting shorter for Italian banks

ECB to scrutinize banks, as they move towards tougher monetary policy

March 24, 2017 8:51 PM (UTC+8)

As Italy continues to look for ways to bail out its struggling banks, there are signs the European Central Bank (ECB) will resort to tough love, as they gear up for more strict monetary policy.

Banks such as Banca Monte Paschi, continue to push off dealing with excessive non-performing loans (NPL) and low capitalization problems, which have grown to indefensible levels.

Sputnik reports this week that the ECB is planning to look at Banca Popolare di Vicenza and Veneto Banca to assess whether they have sufficient capital to offset excessive NPLs. After which they would decide whether to accept or reject a bailout bid.

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