Friday, October 10, 2008

Italy's Measures Can Deal with Any Bank Crisis

The ANNOTICO Report

 

Italy's package of measures to tackle financial turmoil is among the most complete of any government response and means it can deal with any crisis its banks may suffer.

 

Italy 'Can Tackle any Bank Crisis' - Cenbank's Visco

 

Thomson Financial News

Reporting by Gavin Jones; writing by Robin Pomeroy
October 10, 2008

WASHINGTON, Oct 9 (Reuters) - Italy's package of measures to tackle financial turmoil is among the most complete of any government response and means it can deal with any crisis its banks may suffer, a senior Bank of Italy official said on Thursday.

Ignazio Visco, a member of the BOI's executive board, told reporters ahead of Friday's G7 finance ministers' meeting that Italy's banking sector was solid but that contagion could not be ruled out because 'the winds of crisis are very, very strong'.

'We can tackle any crisis for Italian banks,' he said, stressing that the measures were for possible future protection and that he did not envisage their immediate use.

The Italian cabinet passed a decree late on Wednesday which allows the state to inject capital into banks in exchange for non-voting shares. It also makes the state guarantor of last resort for bank deposits of up to 103,000 euros.

 

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