MILAN, July 12 (Reuters) – Italian banks must improve the quality of bad loan data and use them to understand when to raise provisions on debts which are yet to be declared insolvent, the central bank governor said on Wednesday.
A harsh recession which ended in 2014 saddled Italian banks with impaired debts that are still running at around 15 percent of total lending, three times the European average. Banks are under pressure by European banking regulators to cut their soured loans.
In a speech to the Italian banking association, Bank of Italy Governor Ignazio Visco said bad loan data had improved thanks to regulatory demands but was still inadequate.
“The quality of information (provided by banks), initially low, is improving … (but)…
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