MILAN Dec 16 Italy's Veneto Banca said on
Friday the European Central Bank had lifted the minimum
requirement for a key liquidity indicator at the regional bank
and asked it to cut its problem loans.
Veneto Banca is discussing a merger with rival Popolare di
Vicenza after both lenders were rescued by state-sponsored bank
bailout fund Atlante this year to avoid being wound down.
The two banks are one of the main problem spots in Italy's
slow-burning banking crisis.
Echoing a similar statement published earlier on Friday by
Popolare di Vicenza, Veneto Banca said the ECB had asked for a
new strategy plan, measures to lower bad loans, and that it keep
a 10 percentage point buffer over the minimum liquidity coverage
Veneto Banca and Popolare di Vicenza both warned their
capital ratio at end-2016 may suffer due to balance sheet
reviews they were carrying out in tough market conditions.
(Reporting by Valentina Za)