For the renovation, and the Image of the Italian banking system is the relatively small Genoese Banca Carige is now the touchstone. The put to the European Central Bank (ECB) banking supervision on Wednesday, the Bank is under forced administration.

Tobias Piller

economic correspondent for Italy and Greece, with seat in Rome.

F. A. Z.

This follows a dispute over a capital increase. It was arranged by the Bank supervision, from the largest shareholder, Vittorio Malacalza, with 27.5 percent of the shares, however, rejected. Therefore, the Bank’s President Piero Modiano, managing Director Fabio Innocenzi as well as other members of the Board of Directors have resigned, bringing the Bank was in disarray.

Nervous financial markets

the decision of The supervisors resulted in nervousness on the financial markets. The Italian banking index fell 2.8 percent, the Index for the banks in the Eurozone to 2.5 percent. The shares of Carige, were suspended on Wednesday from the stock market trading.

Although Carige, the former savings Bank of Genoa, with a balance sheet total of EUR 24 billion is pretty small and the Europe’s banking supervision, supervises normally, only banks with ten times the size, the Genoese Institute followed by Frankfurt. Italy’s banks are alarmed, and fear that after the first signs of improvement in the industry, the news of the collapse of a Bank is a crisis signal for the country could mean.

Bank index loses value

The Index of all the Italian Bank’s share is currently 30 percent below the value of start to the Year 2018 and lost on Wednesday to around 1.3 percent of its value. Italy’s banks need to identify in the past years, up to 200 billion in bad loans and more than € 100 billion in shaky loans, meaning that around 20 percent of the loans were questionable.

The Italian banking Association Abi common now but positive news for the net value of all bad loans after deduction of provisions booked. This had to be in October 2016 85.5 billion euros and 19.2 percent of the capital and reserves of Italian banks agreed, at the same time, 4.8 percent of all loans. Until October 2018, the net increase in value of the bad loans in Italy, with capital and further write-downs and the sale of receivables to only 38.2 billion euros dropped and, thus, to 9.6 per cent of the own funds.