Banca Monte dei Paschi di Siena
European authorities will prepare by the end of next year enhanced disclosure requirements on bad loans as part of an action plan to tackle the risk of non-performing loans (NPL).
EU economic and finance ministers (Ecofin Council) are expected to adopt today (11 July) a plan to decrease the high level of bad loans held by banks in member states.
Last Friday the Italian government announced the nationalization of the third biggest bank of the country, Monte dei Paschi di Siena. The bank had failed to find 5,5 bn Euros from private investors it needed to stay afloat.
The European Central Bank, however, is of the opinion that the bank needs no less than 8,8 bn Euros.