BTP competition forcing niche lenders to overpay for time deposits-Fineco CEO

Kitco Media
By Reuters
Published:
Updated:
Reuters
MILAN, May 9 (Reuters) - The growing interest of small savers for Italian government bonds poses a problem mainly for specialised lenders that rely on deposits to finance lending, the chief executive of FinecoBank said on Tuesday. Speaking to analysts, CEO Alessandro Foti said projections Fineco had made on its deposits already incorporated any potential competition from government bonds. Helped by higher interest rates, Italy's right wing government is striving to increase the amount of public debt in the hands of domestic retail investors - in a potential threat to asset gatherers such as Fineco or banks. Foti told analysts the main problem was for specialised lenders that used time deposits to raise funding.


"Appetite for term deposits is low ... and we're seeing a growing number of banks that are massively overpaying for term deposits," he said.
(Reporting by Valentina Za, editing by Giselda Vagnoni)

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