Cassa depositi e prestiti SpA said its board appointed Luigi Paganetto vice chairman and Fabrizio Palermo CEO.

The announcement came after media reports that the Italian government agreed to appoint Palermo as CEO of the state lender.

Palermo, who currently serves as CFO of the Italian state lender, will retain his responsibilities as manager in charge of preparing the bank's financial reports on an interim basis, until the board names a new manager.