MILAN, March 28 Italy's Banca Popolare di
Vicenza posted a 1.9 billion euro ($2 billion) loss for 2016 and
said it had suffered severe deposit outflows, raising questions
over whether it will be deemed viable by regulators that must
approve its request for state aid.
The regional bank and local rival Veneto Banca this month
asked to be bailed out by the Italian government, following in
the steps of Italy's fourth-largest lender Monte dei Paschi di
The two Veneto-based banks were rescued from bankruptcy less
than a year ago by state-sponsored, privately-funded banking
industry bailout fund Atlante, which has pumped 3.5 billion
euros in the two lenders.
Popolare di Vicenza said losses stemming mainly from 1.1
billion euros in problematic loan writedowns had pushed its core
capital to 8.21 percent, well below a 10.25 percent minimum
threshold set by European Central Bank supervisors.
It said its liquidity coverage ratio had fallen to 37.9
percent compared with a minimum requirement of 90 percent.
The bank warned changes to loan loss provisions demanded by
the ECB would have a significant impact also in 2017.
($1 = 0.9230 euros)
(Reporting by Valentina Za, editing by Silvia Aloisi)