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Italy's Veneto banks confirm capital shortfall of 6.4 bln euros
April 4, 2017 / 8:07 PM / 8 months ago

Italy's Veneto banks confirm capital shortfall of 6.4 bln euros

MILAN, April 4 (Reuters) - Struggling Italian regional lenders Banca Popolare di Vicenza and Veneto Banca confirmed on Tuesday the European Central Bank has estimated a combined capital shortfall of 6.4 billion euros ($6.83 billion) following stress tests of the lenders conducted by the regulator last year.

The two banks said the ECB had indicated that they both qualified for a precautionary recapitalisation by the state.

The capital shortfall was calculated taking into account the lenders’ score in the adverse scenario of the stress tests, whose results had not been previously made public.

Two sources close to the matter had earlier put the capital gap for the two banks, as calculated by the ECB, at 6.4 billion euros.

One of the sources said the ECB considered the lenders solvent, a key condition for them to receive the state bailout they have requested.

$1 = 0.9376 euros Reporting by Silvia Aloisi

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