trending Market Intelligence /marketintelligence/en/news-insights/trending/ZzbpJGMvmyHfzoXH0ZJwQQ2 content esgSubNav
In This List

ECB appoints temporary administrators for Italy's Banca Carige


Banking Essentials Newsletter: 7th February Edition

Case Study

A Bank Outsources Data Gathering to Meet Basel III Regulations


Private Markets 360° | Episode 8: Powering the Global Private Markets (with Adam Kansler of S&P Global Market Intelligence)


Banks’ Response to Rising Rates & Liquidity Concerns

ECB appoints temporary administrators for Italy's Banca Carige

The European Central Bank appointed temporary administrators for Banca Carige SpA in a bid to stabilize the struggling Italian lender following the resignation of the majority of its board members.

The ECB's action comes as the bank faces pressure due to its weak capital position and widening losses.

Fabio Innocenzi, Pietro Modiano and Raffaele Lener were named temporary administrators, and a three-member surveillance committee comprising Gianluca Brancadoro, Andrea Guaccero and Alessandro Zanotti was also appointed by the regulator to "take charge" of the bank and replace its board of directors.

The ECB said the temporary administration serves as an early intervention measure to stabilize the Italian bank.

"The resignation of the majority of the board made the installation of temporary administration necessary to steer the bank in order to stabilize its governance and pursue effective solutions for ensuring sustainable stability and compliance," the ECB said Jan. 2.

The temporary administrators are responsible for closely monitoring the lender's situation and taking action, if necessary, to ensure compliance with capital requirements.

Italian stock market regulator Consob had suspended trading of shares in Carige on Jan. 2, ahead of the ECB's decision on the lender's governance, Reuters reported.

Carige recently failed to approve plans to boost capital after the Malacalza family, which owns a 27.55% stake in the lender through Malacalza Investimenti Srl, blocked the approval of the bank's crucial €400 million share sale at a Dec. 22 shareholder meeting.

The ECB later met with the Malacalzas but talks were inconclusive. The ECB had asked Carige to complete its plans to boost its capital and look to merge with a stronger partner.