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December 18, 2019 "Delays and uncertainties" on the strengthening of the capital of Popolare di Bari and an action by the board of directors "not fully adequate" to face the acquisition of Tercas, which has "significantly" generated the "high incidence" of credits deteriorated (40% of the Npls came from the Teramo bank and from Caripe). Bankitalia found it in an inspection conducted in 2016 on the Bari People's Republic, whose final document the Ansa agency took over. The inspection of 383 "reports", equal to credits for 165 million, revealed "errors in 20% of the cases examined, with peaks of 30% for those guaranteed by real estate"

Risks on capital increase feasibility
"The concrete feasibility of capital raising interventions must be measured against the current non-positive sentiment of investors towards banks; with the uncertainties on the transformation into a spa; with 281 million worth put up for sale by the shareholders; with a share price of the Popolare di Bari which, even after the fall from 9.53 to 7.5 euros in April 2016, "expresses significantly higher equity multiples" than comparable banks. It is one of the steps taken by the Bankitalia inspection of the Apulian institute which began on 20 June 2016 and ended on 10 November of that year. Considering the poor profitability - the document then warns - "it cannot be excluded that in the short term the value of the share may be subject to a depreciation".

Cda tolerant about repaying loans
"Profiles of weakness" in managing credits that did not fall, "failure to define" by the board of directors on the time and manner of return, and "management based on tolerance". It is one of the passages of the Bank of Italy inspection of 10 November 2016 which is summarized in the reconstruction made by the Bank of Italy on the site. The "hypotheses based on the stress tests - we read - were not sufficiently conservative". For some non-performing loans, then, "for the purpose of discounting the last applied, often lower, was used instead of the original rate, generating an underestimation of the adjustment". And again, to assess the buildings as collateral "the criteria and methodologies for the estimates entrusted to external parties" and "for numerous positions examined referable to the two incorporated banks (Tercas and Caripe, ndr) are not defined the appraisals of the buildings to guarantee they were not up to date.

Underestimated impact of the members' exit
The estimates of the Popolare di Bari on its capital "have not so far taken into account the potential impacts of the risks deriving from the impressive stock of Bank shares sold by over eleven thousand shareholders, equal to 281 million in value, almost a quarter of the share capital . This is another step in the Bank of Italy inspection. "The formulations of the hypotheses based on the stress tests were not sufficiently conservative with reference to the issue of capital instruments".

Errors on riskiness 20% active
"Errors", albeit of "insignificant magnitude", in quantifying the risk-weighted loans of Popolare di Bari emerged in 2016, in the midst of the recovery plan following the acquisition of Tercas. The inspection on 383 'reports', equal to credits weighed for the risk for 165 million - we read - has revealed "errors in 20% of the cases examined, with peaks of 30% for those guaranteed by real estate".

Dl Pop Bari: tomorrow at the exam session in the Finance Committee Room
The Finance Committee of the Chamber will start tomorrow morning the examination of the decree law with the urgent measures for the rescue of the Banca Popolare di Bari. The rapporteur to the provision is Claudio Mancini.