In a speech prepared for Italy's annual Assiom-Forex financial conference, Fabio Panetta, the central bank governor, highlighted that the outcome of ongoing takeover bids in Italy's financial sector will be decided by investors. He emphasized that regulators focus on assessing the resulting entity's stability post-merger.
Panetta pointed out that these mergers could help Italy bridge the asset size gap with other European countries. Italian top banks' assets are significantly lower compared to French, Spanish, and German counterparts.
Stressing the benefits and challenges of banking scale, Panetta viewed these transactions as part of European market integration and consolidation efforts. Notable bids include UniCredit's offer for Banco BPM, which is eyeing Anima Holding, while state-supported Monte dei Paschi di Siena pursued Mediobanca, and BPER Banca targeted Popolare di Sondrio.
UniCredit has also invested in Germany's Commerzbank, pending regulatory approval, possibly leading to a complete acquisition. Panetta highlighted the importance of transactions creating a sustainable bank following sound management principles benefitting the real economy and financial stability.
The surge in deals is attributed to banks holding excess cash exceeding capital thresholds alongside the need for cost-saving measures amidst declining interest rates impacting lending margins, Panetta explained.