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Decision on Monte Paschi rescue soon; Vicenza and Veneto next: ECB

Published 03/27/2017, 06:02 AM
Updated 03/27/2017, 06:10 AM
© Reuters. A Monte dei Paschi di Siena advertisement is seen on a screen in a bank window in downtown Milan

FRANKFURT (Reuters) - European authorities will soon decide on a public rescue plan for Italian lender Monte dei Paschi di Siena (MI:BMPS) and are already working on similar requests from two smaller banks, the European Central Bank's top supervisor said on Monday.

"There will soon be a decision on Monte Paschi,” the head of the ECB's supervisory arm Daniele Nouy said.

Nouy added the ECB has already begun providing information to the European Commission on a "precautionary recapitalization" request for regional Italian lenders Banca Popolare di Vicenza and Veneto Banca.

"We have already been in touch with European Commission," Nouy said.

Asked whether this may involve a merger of the two banks, Nouy said: "The European Commission is in the driver's seat on a restructuring plan."

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