Markets expect ‘severe’ scenario for Italian bank asset quality

By Tyler Davies
23 Jun 2020

Recent share price movements imply that a third of the loans under moratoria at Italian banks could end up as unlikely to pay (UTP) exposures, according to analysts at Equita, an investment bank, who expect that the true figure could be closer to 10%.

Equita published a new report on Tuesday in which it presented its latest analysis of asset quality for Italian banks.

Using an EU-level sensitivity analysis from the European Banking Authority as a starting point, analysts at the firm tried to estimate how the coronavirus pandemic could ...

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