Nuova Banca delle Marche

Banca Marche
Native name	Nuova Banca delle Marche S.p.A.
Type	Società per azioni
Industry	Financial services
Founded	1994; 22 November 2015 (spin off);
Headquarters	Ancona, Italy
Services	Retail and corporate banking
Total assets	€15.3 billion (2015)
Total equity	€1.041 billion (2015)
Owner	Italian National Resolution Fund
Parent	Italian National Resolution Fund
Capital ratio	9% (Tier 1)
Website	Official website

Nuova Banca delle Marche S.p.A. is an Italian bank based in Ancona. It has operations in several regions in central Italy. It was formed on 22 November 2015 by the spin off of the good assets of the original Banca delle Marche.

History

Banca delle Marche was founded in 1994 by the merging of two banks: Cassa di Risparmio della Provincia di Macerata and Pesaro; Cassa di Risparmio di Jesi joined in 1995. In 1990s Cassa di Risparmio delle Provincie Lombarde (Cariplo) was a minority shareholders of the bank for 5.13% (as in 1996),^[1] which Cariplo was a minority shareholders of CR Jesi;^[2] it was diluted to 4.60% in 2001,^[3] which was sold by Banca Intesa in 2002 to Banca delle Marche as treasury shares, for €45 million.^[4] In 1997 the bank acquired a controlling interests in Cassa di Risparmio di Loreto and Mediocredito Fondiario Centroitalia (Banca Marche owned 41.18% shares), the pro forma market share of the group in the loan of Marche region, was 26.7% (based on 1996 data), while before the acquisition, the bank already had a market monopoly of 53.6% in the deposits of the Province of Macerata (pro rata 55.0% after the acquisition), comparing to Banca Popolare di Ancona (14%), Banca di Roma (6.38%) and Banca Nazionale del Lavoro (5.60%). The pro forma market share of the deposits in the Province of Ancona was 32.3%, which ahead Banca Popolare di Ancona (13.03%), Unicredito (11.04%) and Banca di Roma (9.78%).^[5]^[6]

On 1 July 2003 Sanpaolo IMI purchased 7% shares of the bank for €92.1 million. The banking foundations also had a put option to sell an additional 8% shares to Sanpaolo IMI.^[7] However, the foundations did not excise the option. In 2007 the shares held by Sanpaolo IMI was transferred to Intesa Sanpaolo after the merger with Banca Intesa. Intesa Sanpaolo did not took part in the capital increase of Banca delle Marche in 2012.

Insolvency

On 24 October 2011, the board of directors proposed a capital increase of a minimum of €180,677,922.70 to a maximum of €212,562,262.00.^[8] After the capital increase (of €179,573,391^[9]), as at 31 December 2012, the bank had a Tier 1 capital ratio of just 5.62% in consolidated balance sheets, with a shareholders equity of €959.503 million.^[10] According to Ricerche e Studi, the bank was the 19th largest bank in Italy by total assets as at 31 December 2012.^[11]

On 15 October 2013 it was under special administration (A.S.) by the Ministry of Economy and Finance, after a temporary administration by the Banca d'Italia in August.^[12]^[13] On 4 August 2014 Credito Fondiario credited Banca delle Marche for €1.8 billion,^[14] which Credito Fondiario also planned to subscribe the new shares of Banca Marche, partnering with Fondo Interbancario di Tutela dei Depositi (FITD).^[15] The plan was approved by Banca d'Italia on 3 December 2014.^[15] However, the plan was scrapped due to European Commission's investigation on state aid.^[16] After Banca Marche failed to repay the loan, Credito Fondiario sold the collateral in May–June 2015,^[14] which fully reimbursed the loan, with a excess amount was return to Banca Marche in June.^[17]

Another capital injection of more than €2 billion to Banca Marche, Banca Etruria, Carife, and CariChieti by FITD was planned in late 2015, (€1.2 billion maximum for Banca Marche)^[18]^[19] subject to the permission from the Banca d'Italia and European Central Bank.^[20]

Eventually they were bail-out by Italian National Resolution Fund (Italian: Fondo Nazionale di Risoluzionecode: it is deprecated ) on 22 November instead, for about €2 billion. The rescue of the four banks were in line with EU Bank Recovery and Resolution Directive, which was in force in Italy in late 2015. Banca d'Italia was the assigned "national resolution authority" of this mechanism.^[21] As the plans were following the directive, they were approved by the European Commission.^[21] Banca Marche assets and liabilities would split into good and bad bank, while the old bank would be liquidated,^[22] which the shareholders and subordinated bond holders would receive nothing due to bail-in.^[23]

The fund had also injected an additional €1.7 billion to the 4 banks to cover the losses.^[23]