- Analytics
- News and Tools
- Market News
- Italy banking outlook changes to stable from negative as problem loans fall - Moody's
Italy banking outlook changes to stable from negative as problem loans fall - Moody's
The outlook for Italy's banking system has changed to stable from negative as problem loans will continue to fall, while banks' funding conditions improve and their capital holds steady, Moody's Investors Service said in a report.
"We expect Italian banks' problem loans to fall in 2020 for a fifth consecutive year," said Fabio Iannò, VP-Senior Credit Officer at Moody's. "However, their problem loan ratio of around 8% remains more than double the European Union average of 3%, according to European Banking Authority data. We also take into account our forecast for weak yet positive Italian GDP growth, and our stable outlook on Italy's sovereign rating."
Italian banks are set to have stable or moderately better profitability in 2019 and 2020 thanks to lower wholesale funding costs, lower cost of risk, and efficiency gains from recent restructuring initiatives. Capital ratios look set to remain stable, with almost all lenders reporting comfortable buffers above regulatory requirements.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
