March 2, 2017 / 8:38 AM / 9 months ago

Bank of Italy sells last of four small rescued banks to BPER

MILAN, March 2 (Reuters) - BPER Banca said on Thursday it had agreed to buy small lender Nuova Carife for 1 euro, helping Italy solve one of its banking headaches by selling the last one of four small lenders it rescued from bankruptcy in November 2015.

After repeatedly failing to find a buyers for them, Italy’s resolution fund sold three of them to UBI Banca in January also for the symbolic price of 1 euro.

The four lenders are loss making and have poor asset quality. BPER said the resolution fund, which is managed by the Bank of Italy and funded by all Italian lenders, would inject fresh capital into Nuova Carife before the sale.

BPER said the acquisition would boost its market share and take less than 20 basis points off its best-quality capital. (Reporting by Francesca Landini, editing by Valentina Za)

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