ROME, Nov 22 (Reuters) - The Bank of Italy said on Friday that stress tests it conducted this year among small Italian banks showed that six lenders would have insufficient capital under an adverse scenario.
“Under the adverse scenario, the CET1 ratio would fall below the Pillar 1 minimum regulatory requirement (4.5%) for six banks, which account for 13% of the total assets of the banks in the sample,” the central bank said in its financial stability report.
The stress tests were carried out among 97 small, or “less significant” banks, which are not directly supervised by the European Central Bank, in mid-2019.
For another four banks, accounting for 15% of assets, the CET1 ratio would fall below the threshold of 7%, which includes the 2.5% capital conservation buffer, the report said.
“These intermediaries are indeed already subject to a particularly intense level of supervision by the Bank of Italy, in order to increase their ability to withstand adverse economic conditions,” the Bank of Italy said. (Reporting By Gavin Jones)