Italy’s Carige says ECB demands capital-boosting plan

Italy’s last remaining problem bank faces management crisis after high-profile exits

Carige is facing a management crisis after its chairman, deputy chairman and two board members resigned. Photograph: Stefano Rellandini/EPA

Carige is facing a management crisis after its chairman, deputy chairman and two board members resigned. Photograph: Stefano Rellandini/EPA

 

The European Central Bank has asked Banca Carige to submit a plan to meet minimum capital thresholds and would give the lender more time to do so if it were to pursue a merger, the Italian bank said on Sunday.

Carige, Italy’s last remaining large problem bank, is facing a management crisis after its chairman, deputy chairman and two board members resigned in disagreement over the leadership of chief executive Paolo Fiorentino.

The bank said in a statement that an ECB letter had expressed concern over the latest developments at a time when a “a strong leadership is particularly important to overcome differences and secure board backing for the necessary strategic decisions”. - Bloomberg