|Author (Corporate)||European Commission: DG Communication|
|Series Details||STATEMENT/17/1502 (01.06.17)|
Banca Monte dei Paschi di Siena (MPS) is the fifth largetst bank in Italy.
Following the European Banking Authority's EU-wide stress test in 2016, this bank stood out as the worst performer among all scrutinized banks. As a result, the MPS had to discuss a capital plan with the ECB and announced at the same time that it would seeks to raise €5 billion from investors, alongside a disposal of bad loans.
This operation failed after the outcome of a referendum in Italy on constitutional reforms, leading the bank to the announcement that it would ask for a precautionary recapitalisation from the Italian government in December 2016.
The European Commission announced on 1 June 2017 an agreement had been reached with Italy's Economy and Finance Ministry regarding the restructuring plan of Monte dei Paschi di Siena (MPS), enabling the precautionary recapitalisation of the bank in line with EU rules.
The agreement followed intensive contacts between the Commission, the European Central Bank and the Italian authorities. The Commissioner for Competition released a statement in this occasion.
|Subject Categories||Business and Industry|
|Countries / Regions||Europe, Italy|