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January 15, 2021 Smaller Italian banks have greater exposure to credit risk related to the pandemic than larger banks.
This was stated by the governor of the Bank of Italy, Ignazio Visco, speaking at an online workshop on Via Nazionale on the management of banking crises in Europe.
"A recent analysis by the Bank of Italy - underlined Visco - confirms that the effect of the pandemic on the exposure to credit risk of Italian banks could be greater among less relevant institutions than relevant ones, due to the different composition of loan portfolios ".
Imposing losses on creditors of medium and small banks "in the absence of adequate buffer of Mrel capital to absorb them" would end up hitting their deposits with a possible negative ripple effect on other small banks
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