Italy says it hopes the EU will act to support banks if needed after SVB collapse

ROME, March 13 (Reuters) – Italy’s Economy Minister Giancarlo Giorgetti is closely monitoring market developments following the collapse of Silicon Valley Bank (SVB), the ministry said on Monday, adding that the EU should act quickly to support banks if necessary. .

“We appreciate the timeliness with which the US authorities intervened and trust that, if necessary, European authorities will intervene with the same timeliness and assess the consequences for the implementation of monetary policy and financial stability,” the economy ministry said in a statement .

Bank shares in Europe and Asia plunged on Monday as US moves to guarantee deposits from collapsed tech-focused lender SVB failed to reassure investors that other banks remain financially sound.

One official said there was no sign of negative effects spilling over into the wider Italian financial system at this point, and played down Monday’s fall in bank shares as something to be expected.

Shares in the country’s biggest lenders Intesa Sanpaolo ( ISP.MI ), UniCredit ( CRDI.MI ) and Banco BPM ( BAMI.MI ) fell between 5% and 7% in morning trade on the Milan stock exchange.

Reporting by Giuseppe Fonte and Gavin Jones

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