The Bank of Italy has told Italian banks to further hike provisions against bad debts to take into account the worsening economy and asked lenders which posted losses not to distribute dividends or bonuses.
The statement came after the central bank carried out an audit of Italian banks’ 2012 accounts which forced some lenders to hike their loan loss coverage but the move was largely expected, one analyst told CNBC.
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Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.