Potential Italian Bank Mergers Could Boost Banks' Credit Standing — Market Talk

Possible mergers within the Italian banking sector are likely to improve the credit standing of the banks involved, TwentyFour Asset Management's Jakub Lichwa says in a note. Reports indicated Intesa Sanpaolo's plan to take over Banca Monte dei Paschi di Siena as well as Banco BPM's proposal to merge with Banca Monte dei Paschi di Siena. "We have seen consolidation in Italy before," Lichwa says. "We believe these developments continue to support the theme of an ongoing improvement in the broader European banking space." (miriam.mukuru@wsj.com)