EventsEventsPodcasts
Loader
Find Us
ADVERTISEMENT

Intesa falls on reported $22 billion asset sales to meet ECB risk concerns

Intesa falls on reported $22 billion asset sales to meet ECB risk concerns
Intesa falls on reported $22 billion asset sales to meet ECB risk concerns Copyright Thomson Reuters 2023
Copyright Thomson Reuters 2023
By Reuters
Published on Updated
Share this articleComments
Share this articleClose Button

MILAN - Shares in Intesa Sanpaolo fell by 2% on Friday after Bloomberg reported Italy's biggest bank was cutting as much as 20 billion euros ($22 billion) in risk-weighted assets to address supervisory remarks about its inadequate risk models.

Italian daily Il Sole 24 Ore reported on Thursday the European Central Bank had taken issue with the risk models of several Italian banks.

Requests to increase risk weights on loans threatened to wipe from as little as 20-30 basis points to more than half a percentage point off banks' core capital ratios, the paper said.

Il Sole said banks had taken action to avoid the capital hit by shifting to capital-light businesses, transferring risks to investors through so-called synthetic securitisation deals or shedding assets altogether.

Intesa Sanpaolo declined to comment.

($1 = 0.9232 euros)

Share this articleComments

You might also like

Attacks carried out by 'sleeper cells' directed from abroad, claims Dagestani governor

Argentinian fans celebrate 'Maradona Easter' a.k.a. 'the hand of God'

A lifeline lost? Niger's hopes of escaping poverty through China backed oil pipeline are fading