Banca Popolare di Vicenza

Banca Popolare di Vicenza, commonly abbreviated as BPVi and also known as Banca Popolare Vicentina, was an Italian cooperative bank based in Vicenza, Veneto. It was the first cooperative bank established in the Veneto region and developed from a local popular bank into a multi-regional retail and corporate banking group. Its activities included current accounts, lending, savings, investment services, insurance distribution and banking services for small and medium-sized enterprises. The group also operated through specialized subsidiaries, notably Banca Nuova in Sicily and Calabria and FarBanca, a bank focused on pharmacists. During the 1980s and 1990s, BPVi pursued an expansion strategy based on the acquisition and integration of other Italian popular banks. Transactions included Banca Popolare Agricola di Lonigo in 1985, Banca Popolare di Thiene in 1988, Banca Popolare dei Sette Comuni-Asiago in 1991, Banca Popolare di Venezia in 1994, Banca Popolare di Castelfranco Veneto and Banca Popolare di Trieste in 1996, Banca Popolare della Provincia di Belluno in 1997, and Banca Popolare C. Piva di Valdobbiadene and Banca Popolare Udinese in 1998. The bank also established or acquired institutions outside its original northeastern base, including Banca Nuova and Cassa di Risparmio di Prato. Gianni Zonin was the central figure in this expansion. He served as chairman for many years and was associated with BPVi's role as an aggregating institution within the fragmented Italian cooperative-banking sector. The group later acquired branches from UBI Banca in Lombardy and from Cassa di Risparmio di Ferrara, increasing its national presence. By the mid-2010s, the group had hundreds of branches, with particularly strong networks in Veneto, Lombardy, Tuscany and Friuli-Venezia Giulia, as well as an additional southern Italian network through Banca Nuova. BPVi's expansion was followed by a severe deterioration in capital, asset quality and investor confidence. The European Central Bank began supervising the bank directly because of its size. BPVi failed the 2014 European banking stress test but subsequently passed after recapitalization. The bank reported substantial loan write-downs, while investigations and disclosures raised concerns that customers had been financed to purchase BPVi shares. A 2016 demutualization converted the cooperative bank into a joint-stock company and was accompanied by a planned capital increase and proposed stock-market flotation. Weak demand meant that the flotation did not proceed, and the €1.5 billion capital increase was effectively taken up by the Atlante rescue fund. In 2016 and 2017, the bank attempted to restore confidence through management changes, a retail-share repurchase offer and government-guaranteed bond issuance. These measures did not resolve its capital shortfall. In March 2017, BPVi and sister bank Veneto Banca requested precautionary state recapitalization. On 23 June 2017, the European Central Bank and the Single Resolution Board determined that both institutions were failing or likely to fail, while concluding that the conditions for formal European resolution were not met. Italy consequently placed them into national liquidation procedures. Intesa Sanpaolo acquired the viable assets and selected liabilities of BPVi and Veneto Banca for a nominal price of €1 under a government-supported transaction. FarBanca was excluded from the transfer. The remaining entity, including impaired assets and unresolved liabilities, entered a winding-down process. Shareholders and subordinated bondholders were largely exposed to losses, while arrangements were made to protect depositors and provide certain forms of relief for retail investors. BPVi therefore ceased to operate as an independent banking brand, although its failure became an important episode in Italy's post-financial-crisis banking restructuring.

Banca Popolare di Vicenza emerged as a cooperative banking institution serving Vicenza and the wider Veneto economy. Its historical identity was closely connected with the Italian banca popolare model, in which locally rooted banks combined member ownership with commercial banking activities. Over time, BPVi became the first cooperative bank in Veneto and used acquisitions to consolidate neighboring institutions. Its acquisition program accelerated in the 1980s and 1990s. The bank bought Banca Popolare Agricola di Lonigo in 1985, Banca Popolare di Thiene in 1988 and Banca Popolare dei Sette Comuni-Asiago in 1991. It subsequently acquired Banca Popolare di Venezia, Banca Popolare di Castelfranco Veneto, Banca Popolare di Trieste, Banca Popolare della Provincia di Belluno, Banca Popolare C. Piva di Valdobbiadene and Banca Popolare Udinese. Several of these transactions strengthened its position in Veneto and neighboring northeastern regions. BPVi was often described as an aggregating bank within a sector undergoing extensive consolidation. The group expanded beyond its original territory in the 2000s. It formed Banca Nuova in Palermo and combined it with Banca del Popolo of Trapani. In 2002 it acquired Cassa di Risparmio di Prato from Banca Monte dei Paschi di Siena; Cariprato provided a major Tuscan presence before being absorbed into BPVi in 2010. The bank later acquired 61 branches from UBI Banca in 2007 and additional branches from Cassa di Risparmio di Ferrara in 2014. Banca Nuova gave the group a significant presence in Sicily and Calabria, while FarBanca served a specialized professional segment. BPVi participated in sector alliances and held interests in entities including ARCA SGR and Cattolica Assicurazioni. Its earlier relationships with other popular banks reflected the dense network of alliances, combinations and competitive agreements that characterized Italian banking. A 1990s agreement concerning the division of parts of the Veneto market was challenged by the Bank of Italy as anti-competitive, after which BPVi acquired some of the institutions involved. The bank's later history was dominated by capital weakness, asset-quality problems and governance controversy. It became directly supervised by the European Central Bank and was one of the Italian banks that initially failed the 2014 stress test. The bank later wrote down a large volume of customer loans. In 2016, following Italian legal reforms, it converted from a cooperative bank into a joint-stock company and pursued a €1.5 billion capital increase linked to a planned flotation. The offering attracted insufficient demand, and Atlante subscribed the issue. The disclosures surrounding the offering also indicated that customers had been lent money to acquire BPVi shares, creating the risk that those loans would become impaired as the share value collapsed. Management changes followed. Gianni Zonin left the chairmanship in 2016, Gianni Mion became chairman in July, and Fabrizio Viola was appointed chief executive in December. Cattolica Assicurazioni ended its partnership with BPVi in August 2016. BPVi also issued government-guaranteed bonds and offered a share repurchase settlement to retail investors, but these actions did not close the capital gap. In June 2017, the ECB and the Single Resolution Board determined that BPVi and Veneto Banca were failing or likely to fail, while finding that formal resolution was not warranted. Italy therefore used national liquidation procedures. Intesa Sanpaolo acquired the viable assets and selected liabilities of the two banks for €1, supported by state funding for recapitalization and the rationalization of overlapping branches. FarBanca was excluded from the transaction, while impaired assets were to be handled through the liquidation and a government-related bad-asset structure. BPVi's shareholders and subordinated creditors bore substantial losses, and the company continued only as a winding-down entity.

• 2017

  Liquidation and transfer of viable assets to Intesa Sanpaolo

  [1]Banca Popolare di Vicenzaen.wikipedia.org

  The bank was declared failing or likely to fail and its viable business was transferred to Intesa Sanpaolo under an Italian government-supported arrangement.

• 2016

  Demutualization and Atlante recapitalization

  [1]Banca Popolare di Vicenzaen.wikipedia.org

  BPVi converted into a joint-stock company and its planned capital increase was taken up by Atlante after weak market demand.

• 2014

  Direct European Central Bank supervision

  [1]Banca Popolare di Vicenzaen.wikipedia.org

  Because of its size, BPVi became one of the Italian banks supervised directly by the ECB.

• 2007

  Purchase of 61 UBI Banca branches

  [1]Banca Popolare di Vicenzaen.wikipedia.org

  BPVi expanded in Lombardy, particularly in the provinces of Brescia and Bergamo.

• 2002

  Acquisition of Cassa di Risparmio di Prato

  [1]Banca Popolare di Vicenzaen.wikipedia.org

  The group acquired Cariprato, adding a substantial branch network in Tuscany.

• 2000

  Formation of Banca Nuova

  [1]Banca Popolare di Vicenzaen.wikipedia.org

  BPVi formed Banca Nuova in Palermo, establishing a platform for southern Italian operations.

• 1994

  Acquisition of Banca Popolare di Venezia

  [1]Banca Popolare di Vicenzaen.wikipedia.org

  The transaction broadened BPVi's presence within Veneto.

• 1988

  Acquisition of Banca Popolare di Thiene

  [1]Banca Popolare di Vicenzaen.wikipedia.org

  The bank continued consolidating its regional cooperative-banking base.

• 1985

  Acquisition of Banca Popolare Agricola di Lonigo

  [1]Banca Popolare di Vicenzaen.wikipedia.org

  BPVi began a documented phase of expansion through the acquisition of another cooperative bank in the Vicenza area.

Originally positioned as a cooperative regional bank serving households, businesses and local communities in Veneto, BPVi progressively repositioned itself as a nationally expanding Italian banking group through acquisitions and branch purchases.

• Personal financial services

  Retail banking

  BPVi provided conventional banking services for households, including deposit accounts, payment facilities, consumer finance, mortgages and access to savings and investment products. These services were delivered through its branch network across Veneto and other Italian regions. The retail franchise was part of the viable business transferred to Intesa Sanpaolo during the 2017 liquidation transaction.

• Business banking

  Corporate and SME banking

  The bank served companies and small and medium-sized enterprises through lending, working-capital facilities, deposit services and other commercial banking products. Its original regional identity was closely tied to local businesses, while acquisitions expanded the corporate franchise into a wider Italian network.

• Regional banking subsidiary · 2000

  Banca Nuova

  Banca Nuova was the group's principal southern Italian banking subsidiary. It operated mainly in Sicily and Calabria and incorporated Banca del Popolo of Trapani in 2002. Through Banca Nuova, BPVi extended retail and commercial banking beyond its northeastern core.

• Professional banking

  FarBanca

  FarBanca was a specialized subsidiary designed for pharmacists and related professional customers. Unlike the main viable banking operations transferred to Intesa Sanpaolo, FarBanca was excluded from the 2017 asset sale and remained outside that transaction's perimeter.

• 2017

  Bank insolvency and investor losses

  The ECB and Single Resolution Board determined that BPVi was failing or likely to fail. The subsequent liquidation and transfer of viable assets left shareholders and subordinated bondholders facing major losses, while authorities arranged protections and compensation mechanisms for certain depositors and retail investors.

  Source

• 2016

  Share-financing and alleged mis-selling controversy

  The documentation surrounding BPVi's proposed flotation indicated that the bank had financed customers' purchases of its own shares. The collapse in the share value created risks for those loans and led to disputes over the sale of the securities to retail investors.

  Source

Read more

• Vicenza Calcio sponsorship

  Vicenza · Italy

  BPVi was the main sponsor of Vicenza Calcio and also sponsored the club's shirt during the later part of its relationship with the team.

  Outcome. The sponsorship was discontinued when the bank ceased operating as an independent institution.

  Source
• Italian sports sponsorship portfolio

  Italy

  The group and Banca Nuova supported several Italian sports organizations, including Real Vicenza, Udinese Calcio, Pallacanestro Trapani, Trapani Calcio and U.S. Città di Palermo.

  Outcome. These sponsorships ended with the bank's liquidation and the absorption or disposal of its operating businesses.

  Source

• 2017

  Retail share repurchase settlementStrategy

  Background

  BPVi faced disputes connected with the sale of its shares to retail investors and sought to reduce litigation exposure.

  Action taken

  The bank offered eligible retail investors €9 per share for shares acquired during the specified historical period.

  Aftermath

  The offer was accepted for approximately €192.8 million of shares held by 66,770 shareholders, according to the cited reference.

  Shares repurchased under settlement. Approximately €192.8 million (2017)

  Source

• 2017

  Transfer of viable assets to Intesa SanpaoloM&A

  Background

  European authorities determined that BPVi and Veneto Banca were failing or likely to fail but did not meet the criteria for European resolution.

  Action taken

  Italy placed the banks into national liquidation and transferred their viable assets and selected liabilities to Intesa Sanpaolo for a nominal €1.

  Aftermath

  BPVi ceased independent banking operations. Non-performing assets and residual liabilities remained in the liquidation structure, while FarBanca was excluded from the transfer.

  Nominal acquisition price. €1 (June 2017)

  Source

• 2016

  Conversion from cooperative bank to joint-stock companyStrategy

  Background

  Italian banking reform required larger cooperative banks to change their legal structure. BPVi also needed to strengthen its capital position and planned a stock-market flotation.

  Action taken

  BPVi demutualized and proceeded with preparations for a large capital increase and proposed listing.

  Aftermath

  The flotation did not attract sufficient demand, and the capital increase was taken up by Atlante.

  Source

• 2016

  Atlante subscription of the capital increaseOther

  Background

  Market demand for the proposed €1.5 billion capital increase was insufficient, amid concerns about BPVi's capital adequacy and asset quality.

  Action taken

  Atlante subscribed the full capital increase after the intended public offering failed to generate adequate demand.

  Aftermath

  Atlante became the dominant shareholder, but the bank remained under severe capital and governance pressure.

  Capital increase. €1.5 billion subscribed by Atlante (2016)

  Source

1. 1Banca Popolare di Vicenzaen.wikipedia.org