Unicredito Italiano, Europe’s second largest banking group, is expected next week to unveil plans to merge five of its seven domestic commercial banks in order to streamline operations. Whilst it is not known what direct impact this would have on the bank’s factoring operation, Unicredit Factoring, knock on effects to the bank’s factoring subsidiary could result.
The streamlining would put Unicredito in a better position for a potential merger with IntesaBCI, Italy’s largest bank and, according to themselves, “the leading institution in Italy as far as mutual funds and factoring are concerned.”
Antonio Fazio, the Governor of the Bank of Italy who must approve all bank mergers, this year said he opposed any merger between Italy’s largest banks unless they streamlined operations.
