Bank of Italy scrutinizes small bank online funding
The Bank of Italy is increasing its monitoring of smaller lenders that raise funds through digital platforms. Regulators warn that such deposits are volatile.
Xurve View
Xurve View
The Bank of Italy is increasing oversight of 30 smaller banks that raised €11.5B through online deposit platforms. These funds represent 10% of total funding for these lenders, with five banks accounting for 75% of the total sum. Investors face heightened liquidity risks as these digital deposits lack stable client relationships and can exit rapidly during market stress.
