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Moody's, negative outlook on banks

Minister Padoan is harsh: "I won't go into the merits, but the judgment does not represent reality". Moody's points out that the weaknesses are only partially mitigated by a slight recovery in the economy and lower NPL fixed income

The US rating agency confirmed its negative opinion on our banking system. Moody's stressed that the negative outlook underscores "the continued pressure on the country's banks to reduce their large stocks of problem loans in a context of limited capital-raising opportunities, still limited profitability and significant exposure to the Italian government".

The response from Economy Minister Pier Carlo Padoan was prompt: “Moody's judgment does not represent reality”. "In recent months - continued Padoan - there has been a positive acceleration, the stock of NPLs has decreased by 25% since the beginning of the year".   

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