ROME, March 13 (Reuters) – Italy’s Economic system Minister Giancarlo Giorgetti is carefully watching market developments following the collapse of the Silicon Valley Financial institution (SVB), the ministry mentioned on Monday, including that the European Union ought to act shortly to shore up banks if wanted.
“We respect the timeliness with which the U.S. authorities intervened and belief that, if obligatory, European authorities will intervene with the identical timeliness, assessing the implications for the conduct of financial coverage and monetary stability,” the financial system ministry mentioned in an announcement.
Financial institution shares in Europe and Asia plunged on Monday as the USA’ transfer to ensure the deposits of the collapsed tech-focused lender SVB didn’t reassure buyers that different banks stay financially sound.
A authorities official mentioned there was no signal of destructive results spreading to the broader Italian monetary system at current, and performed down Monday’s fall in financial institution shares as one thing that was to be anticipated.
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Shares of the nation’s largest lenders Intesa Sanpaolo (ISP.MI), UniCredit (CRDI.MI) and Banco BPM (BAMI.MI) fell between 5% and seven% in morning buying and selling on the Milan bourse.
Reporting by Giuseppe Fonte and Gavin Jones
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