(21 December 2015 – Italy) The Bank of Italy's (BOI) deputy governor said over the weekend that the majority of the country's banks are in a better state than the small lenders whose failure and subsequent rescue this year wiped out the savings of thousands of retail investors.
The government rescued Banca Marche, Banca Etruria , CariChieti and CariFe at the end of November, using €3.6 billion (A$5.45 billion) from a crisis fund financed by healthy banks.
In the process, investors incurred heavy losses, drawing criticism of Prime Minister Matteo Renzi's government, the Bank of Italy (BOI) and the financial market regulator.
BOI Deputy Governor Luigi Federico Signorini said the country’s banking system had strengthened “very considerably” in recent years despite global financial turmoil.
“There are very few (banks like) Banca Etruria,” Signorini said in a television interview, adding “In the long term, it's healthy that the banks do this kind of business, despite any difficulties it might cause.”
Prime Minister Matteo Renzi said the losses inflicted on savers were inevitable because of new European Union rules aimed at shielding taxpayers in bank rescues.