2021-02-23 Italian Banks and NPL Market – English Update

I am proud to announce that I am going to partecipiate the first episode of #WizkyTalks streaming market commentary on 2021: NPL Market outlook check the event page.

Italian Banks & Distressed Assets Podcast

Italy has given a green light to the takeover bid Credit Agricole Italia plans to launch for small lender Credito Valtellinese (Creval), two government sources told Reuters on Monday.The offer by the Italian division of France’s Credit Agricole needed approval by the Rome government, which reserves the right to block unwanted bids in strategic industries such as banking, telecoms and health. Read the article

Shaping the Banking Union, refocussing on a fair regulatory approach towards the implementation of Basel III in the EU and adapting the treatment of non-performing loans (NPLs) in light of the current economic scenario, : these are the requests the Italian Banking Association (ABI) and the German Banking Industry Committee (GBIC) put forward in a document which calls on European institutions to adopt significant first and second level regulatory measures to counter the economic effects of Covid-19. Read the Article.

Greece’s Alpha Bank will sell a 10.8 billion euro ($13.09 billion) portfolio of impaired loans and 80% of loan services provider Cepal Holdings to U.S. fund Davidson Kempner under a definitive agreement it announced on Monday. The sale of the portfolio, known as Galaxy, will be the second-largest rated securitisation of non-performing exposures (NPEs) in Europe after Monte dei Paschi’s Sienna project, it said. Read the Article.

Bitcoin is an “economic side show” and fintech innovation is the story that will dominate financial services, according to JPMorgan. Analysts at the bank said that despite bitcoin’s monster rally, the cryptocurrency is still beset by a number of issues that may prevent it from becoming a mainstream asset. Read the Article.

The Sunday Telegraph reports that Sunak is keen to ensure that the UK’s £7bn fintech sector maintains its global standing in years to come in his 3 March Budget. The plan is said to be a recommendation from ex-Worldplay chief executive Ron Kalifa in his independent review on how to boost the fintech sector post-Brexit. Read the Article.

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.

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.

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.

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.

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.

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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