Tuesday, February 10, 2015
Reform of Italy's cooperative banks.
The "Investment Compact" decree, which the government approved on January 20, contained a deep reform of cooperative banks, known as the "Popolari". The ten biggest of these will be de-mutualised. As joint-stock companies (Societa per Azioni, SpA), their governance by a per-head voting system of their members ("voto capitario") will be ended. The scale of the banks involved is such that the reform will likely affect the Italian and the European financial system: eight out of 15 Italian banks under the supervision of the ECB are Popolari; all eight are covered by the decree.