23 June 2017, 23:21 GMT
MOSCOW (Sputnik) — The EU regulator accused the ailing banks of repeatedly breaching supervisory capital requirements. The ECB gave them time to present capital plans, but the banks had been unable to offer "credible solutions," it said.
"The ECB deemed that both banks were failing or likely to fail and duly informed the Single Resolution Board (SRB), which concluded that the conditions for a resolution action in relation to the two banks had not been met. The banks will be wound up under Italian insolvency procedures," an ECB statement read.
The banks, based in Italy’s northeastern Veneto province, have been closely monitored since 2014 when a comprehensive assessment of their solvency laid bare capital shortfalls. The ECB said the banks had struggled to cope despite a 2016 financial lifeline of 3.5 billion euros given to them by a private Italian equity fund.
