The Ministry of Economy and Finance no longer wishes to hold stakes in banks

Yesterday, at the ABI general meeting, the Minister for the Economy, Giancarlo Giorgetti, said he hoped this would be the last meeting in which the government would also participate as a shareholder in certain institutions. The most obvious reference is to Monte dei Paschi, in which the Treasury retains a 4.863 per cent stake and from which it intends to withdraw. But Giorgetti’s remarks have a broader scope. The state also has a presence in the banking sector through Invitalia, which wholly owns Mediocredito Centrale; the latter owns BdM Banca, the former Popolare di Bari which was bailed out with public funds, and 85.3 per cent of Cassa di Risparmio di Orvieto.

These shareholdings are also earmarked for the market: a sale process is under way for BdM (with Credem the favourite), whilst the competitive tender process for Orvieto has been reopened. The message, therefore, is that the era of the state as a shareholder in commercial banks – having stepped in to prevent collapses and complete restructuring – must come to an end. This does not necessarily mean privatising Mediocredito Centrale, which retains a public function of supporting businesses. It means distinguishing between a state that intervenes to rescue a bank and a state that remains a permanent owner and competitor in the market. Acting swiftly would not be a bad idea.