Banca Monte dei Paschi di Siena
Italy's historic banking group, tracing its origins to a Sienese charitable lending institution founded in 1472.
Last updated August 31, 2026
AI crawler reads
No AI crawler has read this profile since Oct 28, 2026.
Overview
Banca Monte dei Paschi di Siena S.p.A., commonly known as MPS or BMPS, is an Italian banking group headquartered in Siena. Its history begins with the Monte di Pietà established by the magistrates of the Republic of Siena on 4 March 1472. The institution was created to provide loans and financial assistance, particularly to people who could not obtain affordable credit elsewhere. It is widely described as the world's oldest bank still in continuous operation, although its present corporate form is considerably newer than its medieval origin. The bank's modern identity took shape in 1624, when Grand Duke Ferdinando II of Tuscany granted depositors the income from state-owned pastures in the Maremma. These pastures were known as the paschi, a term that became part of the institution's name. During the seventeenth and eighteenth centuries, the bank consolidated its lending and deposit activities. Following Italian unification, it broadened its geographic reach and added mortgage lending and other commercial banking services. MPS became a major national banking group during the late twentieth and early twenty-first centuries. It expanded through acquisitions of regional institutions, including Banca Agricola Mantovana, Banca del Salento and Cassa di Risparmio di Biella e Vercelli, while Banca Toscana was absorbed into the group. It also developed specialist businesses in consumer credit, leasing and factoring, investment banking, asset management, financial advice and corporate finance. The group reached more than 2,000 branches during its expansion phase and built a significant position in Italian retail and regional banking. A defining turning point was the 2007 agreement to acquire Antonveneta from Banco Santander for approximately €9 billion, excluding Interbanca. The transaction substantially increased MPS's scale but placed considerable pressure on its capital and balance sheet. The subsequent global financial crisis and euro-area sovereign-debt crisis exposed weaknesses in the bank's asset quality and funding structure. Complex transactions known as Santorini and Alexandria became the subject of intense regulatory, political and legal scrutiny after losses connected with them were not initially fully recognized in the bank's accounts. MPS required repeated capital strengthening. In 2013 it obtained state support after requesting a package of approximately €3.9 billion, and in 2017 the Italian government again intervened through a precautionary recapitalization after the bank failed to secure sufficient private capital. The institution also faced high levels of non-performing loans and repeated European stress-test and supervisory challenges. It pursued disposals, securitizations, capital increases and restructuring programs to reduce risk and restore profitability. The bank remains a significant institution under European banking supervision. Its activities include retail and commercial banking, corporate and investment banking through MPS Capital Services, wealth management, insurance distribution, payment services and other financial products. In 2020, reference material described a network of approximately 1,400 branches, around 21,000 employees and about 3.9 million Italian customers, alongside foreign activities. These figures are historical and should not be treated as current operating data without a newer source. MPS is positioned around nationwide Italian banking capabilities combined with a strong historical association with Siena and Tuscany. Its continuing strategic issues have included profitability, asset quality, capital adequacy, digital transformation, branch-network efficiency and the management of state ownership. Reference material also states that, after acquiring Mediobanca in 2025, MPS became Italy's third-largest bank; this development should be verified against current corporate and regulatory disclosures.
History
MPS traces its origins to the Monte di Pietà founded by the Republic of Siena's magistrates on 4 March 1472. Its founding statute drew on the Statuto dei Paschi, a 1419 legal framework governing agriculture and pastoral activities in the Maremma. The original institution was intended to provide charitable credit and financial assistance. In 1624, after Siena had become part of the Grand Duchy of Tuscany, Grand Duke Ferdinando II granted depositors the income from state-owned Maremma pastures. These paschi supplied the name by which the institution became known and helped provide a stable economic foundation for its banking activity. MPS expanded during the seventeenth and eighteenth centuries and, after Italian unification, developed into a broader commercial bank. It extended its activities across the Italian peninsula and entered mortgage lending, among other new lines of business. The bank remained state-owned into the late nineteenth century. In 1988 it participated in the rescue of Cassa di Risparmio di Prato and became that institution's major shareholder. A major institutional reorganization occurred in 1995. A decree of the Italian Treasury transformed the statutory institution into Banca Monte dei Paschi di Siena S.p.A. and created Fondazione Monte dei Paschi di Siena as a separate nonprofit foundation. The foundation retained charitable and social purposes in education, science, health and the arts, especially in Siena and its province. It also became the bank's largest single shareholder until the capital pressures and state support of the 2010s reduced its position. MPS successfully listed on the Italian Stock Exchange on 25 June 1999. After listing, the group pursued an aggressive expansion program. It acquired Banca Agricola Mantovana and Banca del Salento, absorbed Banca Toscana and developed specialized subsidiaries such as Consum.it, MPS Leasing and Factoring, MPS Finance, MP Asset Management, MPS Personale and MPS Banca per l'Impresa. In 2003 it sold its 79% controlling interest in Cassa di Risparmio di Prato to Banca Popolare di Vicenza for approximately €411.2 million. The group also expanded its branch network, private banking, pension and advisory services. The Antonveneta acquisition was the most consequential step in this phase. Announced in November 2007, the purchase from Banco Santander cost approximately €9 billion, excluding Interbanca. MPS also acquired Cassa di Risparmio di Biella e Vercelli from Intesa Sanpaolo in December 2007 for approximately €399 million. In the insurance area, Quadrifoglio Vita was sold to AXA through a transaction involving MPS and Banca Agricola Mantovana. The expansion left the bank more exposed when the global financial crisis and the European sovereign-debt crisis weakened asset values and funding conditions. During the crisis, MPS suffered substantial losses and needed to rebuild capital. Derivative transactions called Santorini and Alexandria, dating respectively from 2002 and 2006, became central to the bank's later troubles. The transactions involved Deutsche Bank and Nomura and were used in arrangements that regulators and prosecutors said obscured losses. The new board uncovered documentation in late 2012 and early 2013. The disclosure caused severe market volatility, leadership repercussions and renewed questions about governance, internal controls and regulatory communication. In January 2013, shareholders authorized substantial capital-raising powers and the bank sought roughly €3.9 billion in support, including the replacement of earlier government-related bonds. The Bank of Italy approved the bailout request. In 2013, MPS was also accused of misleading Italy's market regulator before receiving state support. The bank continued to face high non-performing-loan levels and capital requirements. In 2014 it failed the ECB's comprehensive assessment and recorded a large annual loss after another capital increase. It later pursued loan disposals, securitizations and balance-sheet restructuring. MPS reported a profit in 2015, although the result was materially affected by accounting treatment connected with the Alexandria derivative. In 2016, it securitized or sold loan and lease exposures while preparing a larger capital plan. The 2016 European stress test projected a negative fully loaded CET1 ratio for MPS in the adverse scenario, producing an estimated capital shortfall. After a private recapitalization effort failed, the Italian government carried out a precautionary recapitalization in July 2017. The legal history of the derivative episode remained unsettled for years. A 2019 trial produced prison sentences for former MPS executives and personnel associated with Deutsche Bank and Nomura, while the banks were fined. A Milan appeals court overturned those convictions in 2022, and Italy's Supreme Court of Cassation confirmed the acquittals in 2023. MPS has continued operating as a supervised Italian banking group, with retail, commercial, corporate, investment and wealth-management activities. Reference material reports a 2025 Mediobanca acquisition that would make MPS Italy's third-largest bank; because this is a recent development, the statement requires confirmation from current primary sources.
- 2023
Supreme Court confirms acquittals
[1]Italy's Supreme Court of Cassation confirms the acquittals in the MPS derivatives proceedings.
- 2017
Italian government recapitalization
[1]The government intervenes through a precautionary recapitalization after private fundraising efforts do not provide a sufficient solution.
- 2016
Stress test identifies a severe capital shortfall
[1]The European stress test projects a negative fully loaded CET1 ratio for MPS under the adverse scenario and the bank announces a major recapitalization plan.
- 2014
MPS fails the ECB comprehensive assessment
[1]The bank is required to prepare a capital plan after failing the European banking review.
- 2013
State-related support follows derivatives disclosure
[1]The bank discloses the problematic derivative arrangements and receives approval for approximately €3.9 billion of support.
- 2007
Antonveneta acquisition is announced
[1]MPS agrees to buy Banca Antonveneta from Banco Santander for approximately €9 billion, excluding Interbanca.
- 1999
MPS is listed on the Italian Stock Exchange
[1]The bank completes its public listing on 25 June.
- 1995
Modern joint-stock company is created
[1]The bank is reorganized as Banca Monte dei Paschi di Siena S.p.A., while Fondazione Monte dei Paschi di Siena is established as a separate nonprofit foundation.
- 1988
MPS becomes major shareholder of Cassa di Risparmio di Prato
[1]MPS participates in the rescue of Cassa di Risparmio di Prato and becomes its principal shareholder.
- 1624
The institution receives the Maremma pasture revenues
[1]Grand Duke Ferdinando II grants depositors the income from state-owned Maremma pastures, known as the paschi, which contributes to the bank's name and financial base.
Products and positioning
A historically rooted Italian universal bank with a strong retail and regional presence, combining mass-market banking, business finance and specialist financial services.
Banking
Retail banking
MPS provides everyday banking services for households and individuals, including accounts, payments, lending and related financial products through its Italian branch and digital channels. Retail banking has historically been central to the group's relationship with customers and to its extensive branch network.
Banking
Corporate and investment banking
MPS serves companies and institutional clients through corporate finance, lending, transaction banking and investment-banking activities. MPS Capital Services is the group's specialist subsidiary for corporate and investment banking and related financial-market services.
Lending
Mortgages and lending
The group offers household and business credit, including mortgage finance and other secured and unsecured lending. Lending has been a traditional core activity since the institution expanded beyond its original charitable-credit role.
Consumer finance
Consumer credit
Consumer credit was developed within the group's specialist-company structure, including the Consum.it business referenced in the bank's expansion plans. Products serve household borrowing needs alongside the broader retail franchise.
Specialist finance
Leasing and factoring
MPS Leasing and Factoring provides specialist financing for businesses, including asset-based leasing and receivables-related services. These activities complement the group's conventional corporate lending.
Investment services
Wealth management and asset management
MPS offers savings, investment, private-banking and managed-asset services. Its historical specialist structure included MP Asset Management SGR and businesses supporting investor advice, managed savings and private pensions.
Insurance and retirement
Insurance and pension products
The group distributes insurance and retirement-related products through its banking relationships. Its history includes involvement in insurance ventures and the development of private-pension services.
Controversies
2013
Santorini and Alexandria derivatives controversy
Derivative arrangements associated with Santorini and Alexandria were disclosed after the bank's new board found documentation that had not been fully communicated to auditors and regulators. The transactions were alleged to have concealed or deferred recognition of substantial losses, leading to market turmoil, management departures, state support and criminal proceedings.
Brand decisions
2017
Accept precautionary government recapitalizationStrategyBackground
MPS was unable to complete a sufficient private recapitalization after years of asset-quality and capital problems.
Action taken
The Italian state provided precautionary recapitalization under the applicable European banking framework.
Aftermath
The state became a significant shareholder and the bank continued restructuring and balance-sheet repair.
2016
Launch major recapitalization and non-performing-loan disposal planStrategyBackground
The 2016 European stress test projected a severe capital deficit under the adverse scenario, while MPS had a high stock of non-performing loans.
Action taken
The bank announced a plan involving a €5 billion capital increase and securitization of a broad non-performing-loan portfolio.
Aftermath
The private plan did not provide a lasting solution, and the Italian government subsequently intervened through precautionary recapitalization in 2017.
Planned capital increase. €5 billion (2016)
2013
Seek state-related capital supportStrategyBackground
The disclosure of derivative-related losses and continued capital pressure threatened the bank's solvency and market confidence.
Action taken
MPS sought approximately €3.9 billion of support and received approval from the Bank of Italy for the bailout request.
Aftermath
The intervention stabilized the bank temporarily but intensified scrutiny of its governance, accounting and ownership structure.
Requested support. Approximately €3.9 billion (2013)
2007
Acquire Banca AntonvenetaM&ABackground
MPS pursued rapid national expansion and sought to increase its scale in Italian retail banking.
Action taken
It agreed to purchase Antonveneta from Banco Santander for approximately €9 billion, excluding Interbanca.
Aftermath
The acquisition increased the group's size but contributed to later balance-sheet and capital pressures, especially after the financial and sovereign-debt crises.
Acquisition price. Approximately €9 billion (2007)
Recent events
- 2025
MPS acquisition of Mediobanca reported[1]
M&A
Reference material states that MPS acquired Mediobanca in 2025 and became Italy's third-largest bank. The transaction should be checked against primary corporate disclosures.
- 2023
Italy reduces its holding after MPS returns to the market[4]
Other
The Italian Treasury sold part of its stake in Monte dei Paschi di Siena, reducing state ownership while retaining a substantial interest in the listed bank.
- 2017
Italian government recapitalizes MPS[1]
Regulation · Other
The Italian government intervened with a precautionary recapitalization after the bank struggled to complete a private capital raising.
- 2017
Monte dei Paschi receives state-backed recapitalization[5]
Other · Regulation
After a failed private capital increase, Italy carried out a precautionary recapitalization of MPS under the European Union banking-resolution framework. The transaction made the Italian state the bank's controlling shareholder and was accompanied by restructuring requirements.
- 2016
MPS is the only bank with a negative adverse-scenario CET1 result in 2016 stress test[1]
Regulation
The European Banking Authority stress-test projections identified MPS as the only tested bank with a negative fully loaded CET1 ratio in the adverse 2018 scenario.
- 2014
MPS fails 2014 European banking stress test[1]
Regulation
The bank failed the European Central Bank's comprehensive assessment and was required to prepare a plan to raise additional capital.
- 2013
Bank of Italy approves MPS support request[1]
Regulation · Other
The Bank of Italy approved a request for approximately €3.9 billion of state-related support after the bank sought capital assistance.
- 2007
MPS announces agreement to acquire Banca Antonveneta[1]
M&A
Monte dei Paschi di Siena agreed to acquire Antonveneta from Banco Santander in a transaction valued at approximately €9 billion, excluding Interbanca.
Sources7 sources
- 1Banca Monte dei Paschi di Sienaen.wikipedia.org
- 2Gruppo Monte dei Paschi di Siena official websitegruppomps.it
- 3Capital and asset-quality crisiseba.europa.eu
- 4Italy reduces its holding after MPS returns to the marketreuters.com
- 5Monte dei Paschi receives state-backed recapitalizationconsilium.europa.eu
- 6Granarolo Secures €450m Loan, General Manager Resigns | ESM Magazineesmmagazine.com
- 7Piaggio Group Secures 60 Million Euro Loan To Fund R&Dcarandbike.com
Cite this profile: Cite the canonical profile. /brand-wiki/banca-monte-dei-paschi-di-siena · Editorial policy · How profiles are compiled