MILAN, Feb 12 (Reuters) - Preliminary figures for 2014 at Banca Popolare dell‘Etruria e del Lazio showed a significant fall in the lender’s capital, said commissioners at the small Italian lender that was put under special administration.
The use of more stringent standards to determine the value of loans has eaten into the lender’s capital, the commissioners said, adding the capital shortfall was now larger than what was communicated on Jan. 10.
The lender’s Common Equity Tier 1 ratio, a measure of its financial strength, was 5.9 percent at end-September and it would likely fall further, Banca Etruria said on Jan. 10.
Banca Etruria said on Wednesday it had been placed under special administration after a Bank of Italy inspection revealed heavy balance sheet losses from loan writedowns. (Reporting by Francesca Landini; editing by Agnieszka Flak)