The European Central Bank has set the minimum capital requirements for Banca Monte dei Paschi di Siena (MPS) (BMPS.MI) for next year and also removed a ban on the distribution of dividends, the lender said in a statement on Tuesday.
The ECB told Monte dei Paschi it must maintain a Common Equity Tier 1 ratio – a measure of financial strength – of at least 8.8%, the statement added.
The bank’s CET 1 ratio stood at 15.7% at the end of September, it said, adding that the figure took into account the multi-billion capital raise concluded later in the year.
The lender raised 2.5 billion euros ($2.6 billion) in cash in November, braving stormy markets with a new share issue. More than a third of the proceeds were earmarked to help fund staff exits and boost profits thanks to lower costs.
After a failed re-privatisation attempt last year, Monte dei Paschi is working to improve its appeal for a potential buyer under new CEO Luigi Lovaglio so as to allow the state to cut its 64% stake in a merger deal with a stronger rival.
