Banca Teatina

Banca Teatina S.p.A. was an Italian savings bank headquartered in Chieti Scalo, in the Abruzzo region. It was created on 22 November 2015 under the name Nuova Cassa di Risparmio di Chieti, commonly referred to as Nuova CariChieti, as the “good bank” successor to Cassa di Risparmio della Provincia di Chieti S.p.A. The predecessor had entered special administration during 2014–2015 after a prolonged deterioration in asset quality and capital strength. The institution’s roots reached back to the nineteenth century. Cassa di Risparmio Marrucina was established in 1862, and in 1938 it merged with Cassa di Risparmio di Guardiagrele to form Cassa di Risparmio della Provincia di Chieti. The Italian banking reforms associated with the 1992 Amato Law divided the historic savings-bank structure into a banking company, Carichieti S.p.A., and Fondazione Cassa di Risparmio della Provincia di Chieti. The foundation initially held the majority of the operating bank, while Cariplo held a minority stake. Through corporate succession, Intesa Sanpaolo retained a minority interest until the bank’s resolution. During the predecessor bank’s special administration, a Bank of Italy-appointed administrator conducted an asset-quality review. Additional provisions were required against non-performing loans, putting pressure on the bank’s capital position. A proposed intervention by the interbank deposit-guarantee system was not used after the European Commission determined that an earlier intervention involving Banca Tercas constituted state aid. Instead, the Italian National Resolution Fund applied the newly established European bank-resolution framework to four troubled banks: Banca Marche, Banca Etruria, Carife and CariChieti. The 2015 resolution separated the viable operations from impaired assets. The new bank received capital of approximately €141 million, while non-performing loans were transferred to REV - Gestione Crediti, a shared bad-bank vehicle also used for the other resolved institutions. Shareholders and holders of subordinated debt in the old bank were subject to bail-in and lost their investments. The arrangement provoked significant criticism because Italian banks had often sold subordinated bonds to retail depositors. A later government measure created a compensation route for certain eligible retail bondholders. Nuova CariChieti remained under the resolution structure until UBI Banca agreed in January 2017 to acquire it, together with Nuova Banca Etruria and Nuova Banca Marche, for a nominal price, subject to balance-sheet clean-up and recapitalization conditions. The transaction was accepted on 18 January 2017 and completed on 10 May 2017. The bank was subsequently renamed Banca Teatina, with the new branding taking effect in September 2017. UBI announced a plan to combine the acquired banks with its own operations, and Banca Teatina ceased to exist as an independent banking institution when it was merged into UBI Banca. Its history is therefore principally associated with Italian bank resolution, the creation of a good bank from a failed savings bank, and the consolidation of regional banking assets into a larger national group.

Banca Teatina was the final operating name of a bank created during the resolution of the historic savings bank of Chieti. Its institutional ancestry began with Cassa di Risparmio Marrucina, founded in 1862, and Cassa di Risparmio di Guardiagrele. Those institutions were combined in 1938 to establish Cassa di Risparmio della Provincia di Chieti, a regional savings bank serving the Abruzzo area. The 1992 Amato banking reform reorganized the savings-bank model. The historic public-law entity was divided into a joint-stock banking company, Cassa di Risparmio della Provincia di Chieti S.p.A., and a separate banking foundation, Fondazione Cassa di Risparmio della Provincia di Chieti. The foundation initially owned 80% of the bank, while Cariplo held 20%. Following the later succession of Cariplo into Intesa Sanpaolo, Intesa retained a minority interest until the bank’s failure. The operating bank deteriorated sufficiently to enter special administration in 2014. A Bank of Italy administrator reviewed the bank’s assets and required additional provisioning for non-performing loans. The resulting capital weakness formed part of a wider crisis involving four Italian regional banks. Rather than using the interbank deposit-guarantee fund, which had faced state-aid objections following the Banca Tercas case, the authorities used the Italian National Resolution Fund and the European Union’s new bank-resolution framework. On 22 November 2015, the viable operations were transferred into a new institution initially called Nuova Cassa di Risparmio di Chieti, or Nuova CariChieti. The impaired loan portfolio was moved to REV - Gestione Crediti, a shared bad-bank vehicle. The new bank was capitalized separately, while the old company’s shareholders and subordinated bondholders were bailed in. This structure protected the continuing banking business but caused severe losses for investors in the old entity. The former shareholder foundation’s net assets fell sharply because its investment in the failed bank was written off. The resolution also generated a political and social response. Some retail customers had purchased subordinated bank bonds that they regarded as savings products, and the complete write-off of junior securities led to public criticism. In 2016, the Italian government introduced a solidarity fund and related reimbursement procedures for qualifying retail investors who had acquired affected bonds by the specified eligibility date. UBI Banca emerged as the eventual purchaser. In January 2017 it offered a nominal price for Nuova CariChieti, Nuova Banca Etruria and Nuova Banca Marche, provided that the institutions’ balance sheets were cleansed of further problem assets and that the necessary recapitalization was completed. The transaction was accepted on 18 January and closed on 10 May. Nuova CariChieti was then renamed Banca Teatina, although the name was only rolled out later in 2017. UBI planned to merge the acquired banks into its existing structure, and Banca Teatina consequently became a short-lived brand rather than a long-term independent banking group.

1. 2017Acquisition by UBI Banca completed

   UBI Banca completed the purchase of Nuova CariChieti and later introduced the Banca Teatina name.

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2. 2016Compensation framework for eligible retail investors

   Italian legislation created a reimbursement route for certain retail holders of bonds affected by the four-bank resolution.

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3. 2015Nuova CariChieti established

   A resolution process created the new bank and separated impaired assets from the continuing business.

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4. 2014Special administration begins

   The predecessor bank was placed under special administration as asset-quality and capital problems intensified.

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5. 1992Banking company and foundation separated

   The Amato reform divided the historic savings-bank entity into Carichieti S.p.A. and Fondazione Cassa di Risparmio della Provincia di Chieti.

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6. 1938Provincial savings bank created

   Cassa di Risparmio Marrucina merged with Cassa di Risparmio di Guardiagrele to form Cassa di Risparmio della Provincia di Chieti.

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7. 1862Cassa di Risparmio Marrucina founded

   The predecessor lineage of the later Chieti savings bank began with the establishment of Cassa di Risparmio Marrucina.

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A regional Italian savings-bank franchise preserved through resolution and subsequently used as a platform for integration into UBI Banca.

• Retail bankingBanking services2017

  As a regional savings bank, Banca Teatina’s continuing business consisted primarily of ordinary retail and local commercial banking activities. These included deposit-taking, payment services, lending and branch-based financial services. Detailed product names and specifications are not identified in the available reference material.

• Loans and credit facilitiesLending

  The bank inherited a loan book from the former Chieti savings-bank franchise and served local households and businesses. The predecessor’s non-performing loans were a central issue in the resolution and were transferred to a separate bad-bank vehicle rather than remaining with the newly created institution.

• 2017UBI Banca acquires Nuova CariChietiM&A

  The resolved bank required a long-term owner and further balance-sheet normalization before integration into a larger banking group.

  What changed. UBI Banca submitted and completed a nominal-price acquisition, alongside Nuova Banca Etruria and Nuova Banca Marche, subject to clean-up and recapitalization conditions.

  Aftermath. Nuova CariChieti was renamed Banca Teatina and subsequently incorporated into UBI Banca’s operations.

  Acquisition consideration. Nominal €1 bid (January 2017 bid)

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• 2015Separate the viable bank from impaired assetsStrategy

  The predecessor bank’s special administration and deteriorating loan portfolio made continuation in its existing form impractical.

  What changed. Authorities created Nuova CariChieti as the good bank and transferred non-performing loans to REV - Gestione Crediti.

  Aftermath. The new bank continued operating with fresh capital, while the old entity was subject to liquidation and investor bail-in.

  Recapitalization of Nuova CariChieti. €141 million (2015 resolution)

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• 2015Resolution losses for shareholders and subordinated bondholdersControversy

  The resolution of the predecessor bank imposed losses on shareholders and subordinated bondholders. The treatment attracted criticism because subordinated bank bonds had been widely sold to retail customers, prompting a later compensation framework for qualifying investors.

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• 2017UBI Banca submits bid for Nuova CariChieti

  UBI Banca offered a nominal price for Nuova CariChieti and two other resolved banks, conditional on balance-sheet clean-up and recapitalization.

  M&A
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• 2017Nuova CariChieti renamed Banca Teatina

  After UBI Banca completed the acquisition on 10 May, the bank adopted the Banca Teatina name, effective in September.

  M&AProduct launch
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• 2017Banca Teatina integrated into UBI Banca

  UBI Banca announced plans to merge the acquired regional banks into its own organization, ending Banca Teatina’s existence as an independent bank.

  M&A
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• 2017UBI Banca submits offer for Nuova Carichieti

  UBI Banca made a binding nominal bid for Nuova Carichieti and two other bridge banks, conditional on additional balance-sheet cleanup and recapitalization.

  M&A
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• 2017UBI Banca completes acquisition and rebrands the bank

  The acquisition closed on 10 May 2017. The institution was renamed Banca Teatina, with the rebranding taking effect later that year.

  M&ALeadership change
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• 2016Retail bondholder compensation scheme introduced

  Decree-Law No. 59/2016 established a compensation mechanism for certain retail investors affected by the resolution of four Italian banks, including the former CariChieti.

  RegulationOther
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• 2016Non-performing loans transferred to REV – Gestione Crediti

  The transfer of distressed loans from the new bank to REV – Gestione Crediti was completed as part of the resolution of four Italian banks.

  Regulation
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• 2015Nuova Cassa di Risparmio di Chieti created through bank resolution

  A new bank was established on 22 November as the viable successor to the distressed Cassa di Risparmio della Provincia di Chieti, while impaired assets were separated into a bad-bank structure.

  RegulationOther
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• 2015Italian resolution fund recapitalizes CariChieti

  The Italian National Resolution Fund recapitalized the new CariChieti as part of a four-bank resolution operation conducted under the European bank-recovery framework.

  Regulation
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• 2014Cassa di Risparmio della Provincia di Chieti placed under special administration

  The predecessor bank entered special administration amid capital pressure and concerns about the quality of its loan book.

  RegulationOther
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1. Banca Teatina