| Author (Corporate) | European Commission: DG Communication |
|---|---|
| Series Title | Press Release |
| Series Details | IP/17/1791 (25.06.17) |
| Publication Date | 25/06/2017 |
| Content Type | News |
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Background: The announcement followed the declaration by the European Central Bank (ECB) on 23 June 2017 that BPVI and Veneto Banca were failing or likely to fail and the decisions by the Single Resolution Board (SRB) that resolution action was not warranted in the public interest in either case. Accordingly, Italian authorities were asked to wind-down the banks under Italian national insolvency procedures. On 24 June, Italy notified to the European Commission its plans to grant State aid to wind-down the two banks. The country selected Intesa Sanpaolo as the buyer in an open procedure. The Commission found these measures to be in line with EU State aid rules, in particular the 2013 Banking Communication. Existing shareholders and subordinated debt holders contributed to the costs, reducing the cost of the intervention for the Italian State. Both aid recipients, BPVI and Banca Veneto, were set to be wound up in an orderly fashion and exit the market, while the transferred activities were planned to be restructured and significantly downsized by Intesa, which in combination would limit distortions of competition arising from the aid. The development followed a separate case dealt with earlier in June 2017 regarding the Italian bank Monte dei Paschi di Siena (MPS). The European Commission approved on 25 June 2017 a set of measures by the Italian government to facilitate the liquidation of Banco Popolare di Vicenza (BPVI) and Veneto Banca according to national insolvency law. The Italian State decided to grant cash injections of about €4.8 billion and State guarantees of a maximum of about €12 billion. These measures enable the sale of parts of the two banks' businesses to Intesa Sanpaolo, including the transfer of employees. |
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| Source Link | Link to Main Source http://europa.eu/rapid/press-release_IP-17-1791_en.htm |
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| Subject Categories | Business and Industry, Internal Markets |
| Countries / Regions | Europe, Italy |
