It is known how important the banking system is for the economic activity of a country and it is precisely for this reason that we look with apprehension at the consequences that the current crisis may have on credit institutions.
Italian banks are struggling with the economic crisis. What remedies?
The latter will have to deal with a macro scenario that will suffer a marked deterioration in the coming months, just think that Italy this year should report a contraction of GDP between 8% and 10%, according to various estimates formulated.
A decidedly alarming prospect also for banks, given that it brings to the fore the question of capitalization and liquidity.
Just to deal with the problems on this side, the ECB has recommended banks to suspend dividends from the 2019 financial year.
The credit institutions have thus decided not to proceed with the coupon detachment until October, in order to retain profits that at this stage become increasingly precious.
The current crisis in fact puts a strain on the solidity of Italian banks which, despite the efforts made in recent years in terms of strengthening their capital and cleaning their balance sheets, are in any case exposed to the risk linked precisely to the impact of the current economic worsening .
Italian banks: € 1,400 billion on current accounts. What to fear?
The concern of millions of Italians, therefore, is legitimate, precisely in a moment of crisis like the present one, questioning the solidity of Italian banks.
Moreover, fears are largely justified if we consider that the savings of the Italians amount to 4,200 billion euros, of which over 1,400 billion are held in cash on current accounts.
It is important to know therefore that these huge financial resources are in good hands and safe, because if on the one hand there is the fear and anxiety of defending them from the risk of an asset or a forced withdrawal, on the other also pay attention to the credit institution to which they are entrusted.
Solid Italian banks, but also in difficulty
Often one wonders which are the most solid banks, able to face unfavorable winds without endangering the positions of their customers.
At the same time, however, it is equally useful to know which banks are in greatest difficulty in Italy, that is, those which have less solidity and therefore expose the customer to the risk of losing all of its assets in part.
Before presenting the list of the most troubled banks, it is good to highlight that overall the Italian banking system is still in good health, despite the adversities that have already materialized in the accounts for the first quarter of this year, even if they will be felt further ahead in time.
However, there are some lenders in difficulty, to which it is good to pay attention, taking decisively distances in some cases.
Italian banks most at risk: the study by Altroconsumo
On the basis of the data available in December 2019, the Altroconsumo research office carried out an analysis of the most solid and most risky banks in Italy.
The ranking was drawn up on the basis of two key reference parameters: the Common Tier Equity 1 ratio (CET1) and the Total Capital Ratio.
The first expresses the ratio between the paid-up ordinary capital and the risk-weighted assets, while the Total Capital ratio expresses the relationship between the overall regulatory capital and the value of the weighted assets.
Needless to say, the higher these two indicators are, the more solid the bank in question is and vice versa.
Altroconsumo indicates as a minimum level for sufficiency a CET1 ratio of 9% and a Total Capital Ratio of 12.5% and banks that respect these limits are given a score of 100.
Italian banks: the list of those most in difficulty
From the analysis carried out at the end of 2019 it emerges that two more are in particular at risk, having obtained a rating of only one star and a score lower than 100.
These are CRUs of Rovereto Bcc and Banca Farmafactoring and the latter, however, is the only one listed on Piazza Affari which appears on the list of the most risky credit institutions.
To these are added other banks that have obtained a rating of 1 stars and a score above 100 and they are:
Bank of Credit Paolo Azzoaglio
Bank of Filottrano
Banca Don Rizzo
Monte Pruno Bank
Banca Patavina – CC of Sant’Elena and Piove di Sacco
Bcc Bergamo and valleys
Bcc dell’Oglio and del Serio
Bcc of Ancona and Falconara Marittima
Bcc of Cagliari
Bcc di Castagneto Carducci
Bcc of Recanati and Colmurano
Bcc Valdostana – Crédit Coop. Valdôtaine
Bcc of Venice, Padua and Rovigo – Banca Annia
BTL– Bank of the Lombard territory
CentroMarca Bcc of Treviso and Venice
CR of Bra
Bcc Montecatini Terme
Bientina S. Pietro in Vincio
Italian banks: what to do if you are a client of one of those at risk?
It should be noted that the same study office of Altroconsumo shows that the two most endangered banks are CRU of Rovereto and Banca Farmafactoring and to the customers of both the expert advice is to look for another credit institution to replace the current one.
For the other banks on the list, the danger is less impending and there is not necessarily talk of a bankruptcy risk.
Altroconsumo suggests limiting themselves in these cases to having a simple current account, without however subscribing to the bank’s shares and bonds, to be avoided like the deposit accounts, since these instruments expose to considerable risks in the case of these credit institutions.