January 31, 2018 / 4:58 PM / a year ago

Italy's UBI CEO says banking system consolidation is 'written in stone'

FILE PHOTO - UBI Bank CEO Victor Massiah gestures during an interview with Reuters in downtown Milan July 6, 2012. REUTERS/Alessandro Garofalo

MILAN (Reuters) - Further consolidation in the banking industry is inevitable to help the sector cope with rising regulatory costs and the required hefty investments in technology, the head of Italy’s UBI Banca said.

Speaking at a Reuters Breakingviews event in Milan on Wednesday, UBI CEO Victor Massiah also said that banks, in order to perform, had to adapt to “a new normal” in terms of revenues while stepping up investments.

“Consolidation of the system is written in stone,” Massiah said when asked about the size of Italy’s banking system.

He added it was not because of Italy’s “peculiar situation” but due to different reasons that applied to all of Europe.

“One is the cost of regulation, another the investments required... in new technologies and thirdly because of consumer protection,” he said.

Reporting by Valentina Za and Andrea Mandala, editing by Giulia Segreti

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