‘Last nail in the coffin’ for BRRD as Bari nears bail-out
Italy and the EU provoked indignation this week, when Italy approved the use of public money to rescue Banca Popolare di Bari, a small regional lender faltering under the weight of bad loans. The decision looks likely to join a long list of cases when European Union rules designed to prevent government bank bail-outs have proved toothless, prompting market participants to think the EU has capitulated.
The Italian government stated at the beginning of the week that it would allow Banca del Mezzogiorno-Mediocredito Centrale (MCC), a state-owned bank, to provide up to €900m of support for BP Bari.The Fondo Interbancario di Tutela dei Depositi (FITD), Italy’s deposit guarantee fund, could also contribute to ...
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