2021-02-05 Italian Banks and NPL Market – English Update

The European Banking Authority (EBA) published additional clarifications on the application of the prudential framework in response to issues raised as a consequence of the COVID-19 pandemic. These clarifications update the FAQ section of the EBA Report on COVID-19 implementation policies, which provides clarity on the implementation of (i) the EBA Guidelines on moratoria and (ii) the EBA Guidelines on COVID-19 reporting and disclosure. This Report is part of the EBA’s wider monitoring of the implementation of COVID-19 policies as well as of the application of existing policies under these exceptional circumstances. Read the article.

Intesa Sanpaolo is marketing a bad loan portfolio worth up to 5-6 billion euro ($6-$7 billion), two people familiar with the matter said, as Italy’s biggest bank steps up efforts to cut bad debts after buying smaller rival UBI. Intesa Sanpaolo, which reports full-year results on Friday, is expected to update investors on its clean-up plans, as Italian banks brace for a new wave of pandemic-driven problem debts once government-support measures are lifted. Read the Article.

Bank M&A across Europe comes to a boil—the COVID-19 pandemic has hastened the confluence of conducive conditions for mega domestic mergers. Spain and the Balkans lead the charge, with Italy, Germany, France, Poland and the UK expected to follow. Read The Article.

Visa , a one-time enemy of the bitcoin and cryptocurrency community, is fast becoming one of bitcoin’s biggest cheerleaders. After partnering with 35 various bitcoin and cryptocurrency platforms in recent years, the credit card company has announced it plans to help banks roll out bitcoin and cryptocurrency buying and trading services with a Visa crypto software program, set to launch later this year. Read the Article.

Scope Ratings reported that Italian NPL collections have been volatile in recent months. They increased 16% in November 2020 compared to October, but performance remains subdued relative to pre-Covid levels. Collections picked up in June and July 2020 as the courts reopened, suffered a seasonal effect and fell back in August, but have plateaued 10%-15% below pre-Covid levels since September. We expect performance will continue to be impacted in the short term because of the slowdown in economic activity during the November lockdown. Read the Report.

London-based Cairn Capital, bought by Milan-based Mediobanca in 2015, said on Tuesday it would acquire Bybrook for an undisclosed amount, adding $2.5bn in assets under management. Following the deal, set to complete by the end of June, the combined entity will manage a total of $8bn across public, private, credit and distressed debt markets.  Read the Article.

WizKey, a fintech that offers innovative solutions for the credit market, has signed an agreement with SIA, a leading European hi-tech company in payment services and infrastructures controlled by CDP Equity, to launch an innovative platform available to banks, funds and financial operators to negotiate credits on blockchain and encourage greater liquidity for the benefit of SMEs. Read the article in Italian.

Dbrs Morningstar has published an update on Italian banks stating that while they retain adequate capital, they remain vulnerable to asset quality deterioration in the future given the prolonged crisis caused by the pandemic. Read the article in Italian.

The European Consumer Organization (BEUC, Bureau Européen des Unions de Consommateurs) expressed concern regarding the European Commission Action plan: “Tackling non-performing loans (NPLs) in the aftermath of the COVID-19 pandemic” released in December. I wrote a short post to explain why these concerns are logically flawed Read the article

AideXa, the new fintech bank dedicated to small businesses and VAT account holders, founded by Roberto Nicastro and Federico Sforza, has entered into a partnership with CRIF, a global company specializing in credit and business information systems and advanced digital solutions for business development and open banking. Read the article.

Zenith Service S.p.A. (“Zenith”) announced the closing of the third real estate securitization transaction realized according the latest amendment to Law No. 130/99 implemented by law on June 28, 2019. The transaction, named “Gremo Real Estate SPV”, concerns a series of real estate compendiums located in a renowned tourist resort, hotels to be converted into residential and thalassotherapy facilities, garage complexes located in Spotorno (SV).
Read the article in Italian.

Virtual B and Fintech District presente a new consulting service named “Advance”. It is for companies to create and manage “tailor-made” projects delivered in a “Data Science as a Service” mode. Read the article in Italian.

Check previous Eglish Updates

If you like my updates you can:

Are you interested in Italian banks and NPL/UTP market? Ask for a briefing  (in person or via conference call) by sending me a private message. I am also available for consulting projects on Distressed Assets pricing and Portfolio Management.

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Pubblicato da Massimo Famularo

Investment Manager and Blogger Focus on Distressed Assets and Non Performing Loans Interested in Politics, Economics,


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