Italy: Banks struggle to pacify ECB bad-debt push

Andrea Enria is already at the sharp end of rebukes from Italy’s populist government, only two weeks into his new job as head of the eurozone’s single banking supervisor.

In mid-January, Monte dei Paschi di Siena, now majority state-owned, announced details from the December draft version of its annual supervisory review and evaluation process (SREP).

This included an unexpected European Central Bank (ECB) recommendation to bring coverage of its bad-debt pile up to 100% within seven years – something the market thought only stronger banks would have to do.