2 months ago
Stock Market

MarketPulse Europe: Italian Banks Plunge on ECB Report

Investing.com - Italian bank stocks were among the worst performers in European midday trade on Tuesday, as investors dumped them

Investing.com - Italian bank stocks were among the worst performers in European midday trade on Tuesday, as investors dumped them in reaction to a report suggesting they face new demands from regulators to bolster their provisions against bad loans.

The European Central Bank has asked lenders it oversees to put aside enough money to fully cover their impaired loans by around 2026, Italian newspaper Il Sole 24 Ore reported earlier, citing a source.

The report focused in particular on Italian banks, saying the country's lenders were burdened by the highest amount of impaired loans in Europe.

The Italian banking index was down 2.3% in Milan by 6:40AM ET (11:40 GMT), on track for its biggest daily loss since Dec. 20.

Smaller lenders UBI Banca (MI:UBI) and Bper Banca (MI:EMII) were the top losers, tumbling 7% and 5% respectively.

Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) were also under pressure, down 2.5% and 1.8% respectively, while Banco Bpm (MI:BAMI), the country's third-largest bank, sank 5.8%.

Meanwhile, shares in troubled lender Banca Monte dei Paschi di Siena (MI:BMPS) fell almost 6%, adding to Monday's 10% drop.

-- Reuters contributed to this report