Banca Popolare dell'Etruria e del Lazio

Banca Popolare dell'Etruria e del Lazio, commonly known as Banca Etruria or BPEL, was an Italian regional bank headquartered in Arezzo, Tuscany. Its roots went back to Banca Mutua Popolare Aretina, established in Arezzo in 1881. The institution expanded through a series of mergers and absorptions involving other popular banks in Tuscany, Umbria and Lazio, gradually developing from a local cooperative lender into a regional banking group. A major transformation began in 1971, when the Arezzo bank absorbed Banca Popolare Senese and Banca Popolare della Provincia di Livorno and adopted the name Banca Popolare dell'Etruria. Further combinations followed, including Banca Popolare di Montepulciano in 1972, Banca Popolare di Pontevalleceppi in 1982, Banca Popolare di Cagli in 1985 and Banca Popolare di Gualdo Tadino in 1987. On 31 December 1988, the merger with Banca Popolare dell'Alto Lazio created Banca Popolare dell'Etruria e del Lazio, reflecting the bank's broader geographic footprint. The institution later absorbed Banca Cooperativa di Capraia Montelupo e Vitolini in 1990. The bank became publicly traded on Borsa Italiana in 1998 under the ticker PEL. During the 2000s it expanded its group structure, acquiring control of Banca Federico Del Vecchio in 2006 and reaching full ownership in 2008. Banca Popolare Lecchese also joined the group in 2008, although the holding was sold during the 2015 restructuring period. In mid-2014, BPEL changed from a cooperative company structure to a joint-stock company, a legal change that occurred shortly before the institution entered a severe capital and asset-quality crisis. By 2014, the bank's capital ratios had deteriorated materially. Its reported Tier 1 capital ratio was 6.6% at the end of 2013 on a Basel II basis and 6.1% at 30 June 2014 under Basel III, below the thresholds applied by Italian and European banking authorities. The Ministry of Economy and Finance placed the bank under administration in early 2015. Efforts to address its large stock of non-performing loans included the sale, without recourse, of approximately €302 million in gross book value of bad debts to Credito Fondiario in November 2015. On 22 November 2015, the Italian resolution framework was applied to BPEL together with Banca Marche, Carife and CariChieti. The original bank was placed into resolution and its assets and liabilities were divided between a new good bank and a bad-bank structure. The new institution, Nuova Banca dell'Etruria e del Lazio, received viable operations, while non-performing exposures were transferred to REV - Gestione Crediti, a vehicle shared by the four resolved banks. The National Resolution Fund recapitalized the four institutions, while shareholders and subordinated bondholders of the original banks were subjected to losses under the bail-in rules then in force. The resolution caused substantial political and public controversy in Italy, particularly because retail customers had purchased subordinated bank bonds that were exposed to the bail-in. A later government refund mechanism allowed certain eligible retail investors to seek compensation, subject to purchase-date and amount conditions. The good bank was subsequently sold to UBI Banca for a nominal price after further balance-sheet cleanup and recapitalization. The transaction was completed in May 2017, when Nuova Banca Etruria was renamed Banca Tirrenica. Banca Tirrenica was then absorbed into UBI Banca in November 2017. The original Banca Popolare dell'Etruria e del Lazio therefore ceased to exist as an independent banking institution in 2015, while its successor operations were ultimately integrated into UBI Banca.

Banca Popolare dell'Etruria e del Lazio originated as Banca Mutua Popolare Aretina, founded in Arezzo on 16 April 1881. Its early identity was tied to the cooperative popular-bank tradition, which focused on local savings, lending and economic development. The bank expanded beyond Arezzo through mergers with other popular banks in central Italy. In 1971 it absorbed Banca Popolare Senese, founded in Siena in 1865, and Banca Popolare della Provincia di Livorno. The enlarged institution was renamed Banca Popolare dell'Etruria. It continued its regional consolidation by absorbing Banca Popolare di Montepulciano in 1972, Banca Popolare di Pontevalleceppi in 1982, Banca Popolare di Cagli in 1985 and Banca Popolare di Gualdo Tadino in 1987. The merger with Banca Popolare dell'Alto Lazio on 31 December 1988 produced the name Banca Popolare dell'Etruria e del Lazio. The bank added Banca Cooperativa di Capraia Montelupo e Vitolini in 1990 and entered the public market in 1998, when its shares were listed on Borsa Italiana under the symbol PEL. It subsequently developed a banking group through acquisitions, including majority control of Banca Federico Del Vecchio in 2006 and complete ownership in 2008. Banca Popolare Lecchese also became part of the group in 2008. The institution changed its legal form from a cooperative company to a joint-stock company in mid-2014. Around the same period, its capital position and asset quality weakened. The last annual report of the original bank reported shareholders' equity of approximately €632.060 million at 31 December 2013 and a Tier 1 ratio of 6.6% under Basel II. The ratio was reported at 6.1% at 30 June 2014 under Basel III. These levels were insufficient against the applicable supervisory expectations, and the bank was placed under administration in early 2015. As the crisis deepened, the bank attempted to reduce its impaired assets. On 17 November 2015, it sold bad loans with a gross book value of approximately €302 million to Credito Fondiario without recourse. A wider rescue plan involving the interbank deposit-protection system was considered, but the bank and three other troubled Italian institutions were ultimately resolved through the National Resolution Fund on 22 November 2015. The resolution created a successor good bank, Nuova Banca dell'Etruria e del Lazio, while the original entity entered liquidation. Non-performing assets were transferred to REV - Gestione Crediti, a bad-bank vehicle also used for the other resolved institutions. The National Resolution Fund provided recapitalization, and the original bank's shareholders and subordinated bondholders lost their investment under the bail-in structure. The process was authorized within the European Union's Bank Recovery and Resolution Directive framework. The treatment of retail subordinated-bond investors became a major public controversy. Critics argued that Italian banks had marketed risky securities to depositors who did not fully understand their loss exposure. In 2016, the Italian government established a solidarity fund and refund procedure for certain eligible retail investors, subject to conditions including the purchase date and a compensation ceiling. The good bank was later prepared for sale through additional asset cleanup and recapitalization. UBI Banca accepted a nominal-price offer in January 2017, and the transaction closed on 10 May 2017. Nuova Banca Etruria was renamed Banca Tirrenica, alongside the rebranding of the other acquired bridge banks. Banca Tirrenica was absorbed into UBI Banca with effect from 27 November 2017. The historic Banca Popolare dell'Etruria e del Lazio therefore remains a defunct predecessor institution rather than an active bank.

• 2017

  Sale to UBI Banca and final integration

  [1]Banca Tirrenicaen.wikipedia.org

  The successor bank was sold to UBI Banca, renamed Banca Tirrenica and absorbed into UBI Banca in November.

• 2015

  Resolution and creation of a successor good bank

  [1]Banca Tirrenicaen.wikipedia.org

  The original bank was resolved on 22 November and its viable operations were transferred to Nuova Banca dell'Etruria e del Lazio.

• 2014

  Conversion to a joint-stock company

  [1]Banca Tirrenicaen.wikipedia.org

  The bank changed from a cooperative company to a company limited by shares.

• 2008

  Full control of Banca Federico Del Vecchio

  [1]Banca Tirrenicaen.wikipedia.org

  BPEL reached full ownership of Banca Federico Del Vecchio; Banca Popolare Lecchese also joined the group.

• 2006

  Acquisition of Banca Federico Del Vecchio

  [1]Banca Tirrenicaen.wikipedia.org

  BPEL acquired a majority interest in Banca Federico Del Vecchio.

• 1998

  Stock-market listing

  [1]Banca Tirrenicaen.wikipedia.org

  The bank was listed on Borsa Italiana under ticker PEL.

• 1988

  Creation of Banca Popolare dell'Etruria e del Lazio

  [1]Banca Tirrenicaen.wikipedia.org

  Banca Popolare dell'Alto Lazio merged into the bank on 31 December, creating the historic BPEL structure.

• 1971

  Expansion and adoption of the Etruria name

  [1]Banca Tirrenicaen.wikipedia.org

  The bank absorbed Banca Popolare Senese and Banca Popolare della Provincia di Livorno and became Banca Popolare dell'Etruria.

• 1881

  Banca Mutua Popolare Aretina founded

  [1]Banca Tirrenicaen.wikipedia.org

  The institution's predecessor was founded in Arezzo on 16 April.

A locally rooted Italian popular bank serving retail customers, small businesses and regional communities across central Italy.

• Consumer banking

  Retail banking

  The bank's regional popular-bank model included services for households and individual customers, such as deposit accounts, current accounts, payment services, consumer credit and other standard branch-banking facilities. Specific product names and terms are not identified in the available reference material.

• Commercial banking

  Business banking

  BPEL served businesses in its central-Italian operating areas through lending, liquidity services, deposits and other commercial banking relationships. Its cooperative and regional origins placed emphasis on local enterprises and communities, although the available material does not provide a detailed product catalogue.

• Savings and investments

  Investment and bank bonds

  The bank distributed investment products, including its own subordinated bonds. These securities became central to the 2015 resolution controversy because shareholders and subordinated bondholders of the original institution were exposed to losses under the bail-in process.

• 2015

  Bail-in of shareholders and subordinated bondholders

  The bank's resolution resulted in losses for shareholders and subordinated bondholders. The treatment of retail investors who had purchased subordinated bonds generated significant public criticism and led to a later compensation mechanism for eligible investors.

  Source

Read more

• 2017

  Sale of the successor good bank to UBI BancaM&A

  Background

  The successor bank required further balance-sheet cleanup and recapitalization before a sale could be completed.

  Action taken

  UBI Banca accepted a binding offer for a nominal €1 for Nuova Banca Etruria and two other bridge banks. The transaction closed on 10 May 2017, after which Nuova Banca Etruria was renamed Banca Tirrenica.

  Aftermath

  Banca Tirrenica was absorbed into UBI Banca with effect from 27 November 2017.

  Source

• 2015

  Resolution and separation of good and bad assetsStrategy

  Background

  The bank entered a severe capital and asset-quality crisis, with reported capital ratios below applicable supervisory expectations and a substantial stock of bad loans.

  Action taken

  On 22 November 2015, the National Resolution Fund recapitalized the institution, transferred viable operations to Nuova Banca dell'Etruria e del Lazio and placed impaired assets into the shared bad-bank vehicle REV - Gestione Crediti.

  Aftermath

  The original bank was liquidated. Shareholders and subordinated bondholders incurred losses, while the successor good bank was later sold to UBI Banca.

  National Resolution Fund recapitalization for the four resolved banks. Approximately €2 billion, with an additional approximately €1.7 billion used to cover losses across the four banks (November 2015)

  Source

1. 1Banca Tirrenicaen.wikipedia.org