Mediobanca CEO Says Italy Removed Bank Tail Risks

The video discusses the Italian banking system, highlighting the removal of tail risks through major interventions. It addresses the ongoing challenges of profitability and asset quality, noting that Italian banks have a higher NP ratio compared to the European average. The video also explores the potential for cross-border consolidation among European banks, emphasizing regulatory and political uncertainties that hinder progress.

What were the two major interventions that helped remove systemic risks in Italy's banking sector?

• Capital increase and government bailout

• Interest rate cuts and tax incentives

• Privatization of banks and foreign investments

• Reduction in lending rates and increased savings

What is the expected return on tangible equity for Italian banks in 2018?

• 5.5%

• 10.5%

• 3.5%

• 7.5%

How does the asset quality of Italian banks compare to the European average?

• It is twice as good

• It is three times worse

• It is slightly better

• It is on par

What is the current plan for Italian banks with an NP ratio above 10%?

• No reduction plan

• Reduction over three years

• Immediate reduction within a year

• Increase in NP ratio

What are the main challenges to cross-border consolidation among European banks?

• Excessive competition

• High profitability of banks

• Regulatory and political uncertainties

• Lack of interest from banks