Nuova Cassa di Risparmio di Ferrara S.p.A. known as Nuova Carife ew Carifein short, was an Italian bank, based in

Ferrara Ferrara (, ; egl, Fràra ) is a city and ''comune'' in Emilia-Romagna, northern Italy, capital of the Province of Ferrara. it had 132,009 inhabitants. It is situated northeast of Bologna, on the Po di Volano, a branch channel of the main stream ...

, Emilia-Romagna. Nuova Carife was founded on 22 November 2015 as a good bank that spin off from the original Cassa di Risparmio di Ferrara S.p.A. (Carife). The old Carife was under

administration Administration may refer to: Management of organizations * Management, the act of directing people towards accomplishing a goal ** Administrative Assistant, traditionally known as a Secretary, or also known as an administrative officer, administ ...

from 2013 and 2015, and now being liquidated as a

bad bank A bad bank is a corporate structure which isolates illiquid and high risk assets (typically non-performing loans) held by a bank or a financial organisation, or perhaps a group of banks or financial organisations. A bank may accumulate a large p ...

. Nevertheless, Nuova Carife was a short-lived bank, which was acquired by

BPER Banca BPER Banca S.p.A., formerly known as Banca Popolare dell'Emilia Romagna S.C., is an Italian banking group offering traditional banking services to individuals, corporate and public entities. The company is based in Modena and is a constituent of ...

in 2017 from Italian Resolution Fund, becoming branches of the banking group in the same year. The former majority shareholder and the old

legal person In law, a legal person is any person or 'thing' (less ambiguously, any legal entity) that can do the things a human person is usually able to do in law – such as enter into contracts, sue and be sued, own property, and so on. The reason for ...

of the bank, Fondazione Cassa di Risparmio di Ferrara (Fondazione Carife) survived as a charity organization.

History

Cassa di Risparmio di Ferrara

Found in 1838 by Count

Alessandro Masi Alessandro is both a given name and a surname, the Italian form of the name Alexander. Notable people with the name include: People with the given name Alessandro * Alessandro Allori (1535–1607), Italian portrait painter * Alessandro Baric ...

, Cassa di Risparmio di Ferrara was one of the oldest savings bank ( it, cassa di risparmio) after

Bologna Bologna (, , ; egl, label=Emilian language, Emilian, Bulåggna ; lat, Bononia) is the capital and largest city of the Emilia-Romagna region in Northern Italy. It is the seventh most populous city in Italy with about 400,000 inhabitants and 1 ...

(since 1837),

Spoleto Spoleto (, also , , ; la, Spoletum) is an ancient city in the Italian province of Perugia in east-central Umbria on a foothill of the Apennines. It is S. of Trevi, N. of Terni, SE of Perugia; SE of Florence; and N of Rome. History Sp ...

(since 1836; renamed and relocated in 2012; closed 2016) and

Rome , established_title = Founded , established_date = 753 BC , founder = King Romulus ( legendary) , image_map = Map of comune of Rome (metropolitan city of Capital Rome, region Lazio, Italy).svg , map_caption ...

(1836; now defunct) in the

Papal States The Papal States ( ; it, Stato Pontificio, ), officially the State of the Church ( it, Stato della Chiesa, ; la, Status Ecclesiasticus;), were a series of territories in the Italian Peninsula under the direct Sovereignty, sovereign rule of ...

(but not in the whole Italy). From 1927 to 1942 the bank acquired Cassa di Risparmio di Copparo, Banca Mutua Popolare di Bondeno, the local mount of piety of Ferrara (found 1508), Banca di Portomaggiore, Monte di Credito su Pegno di Comacchio and Banca Popolare Cooperativa di Argenta. An Italian law enacted in 1927 requires the savings bank to merge with bigger bank if it was under a certain size. In December 1991, the bank daily operation and ownership also split into a ''

società per azioni ''Società'' (Italian language, Italian: ''Society'') was an Italian communist cultural magazine published in Italy between 1945 and 1961. History and profile ''Società'' was founded as a quarterly magazine in Florence in 1945. The founders wer ...

'' and Fondazione Cassa di Risparmio di Ferrara (Fondazione Carife). In 1994 the group acquired Banca di Credito Agrario di Ferrara. In 2002 the bank acquired Commercio e Finanza – Leasing e Factoring as well as

Banca di Treviso Banca may refer to: Places * Bangka Island, an island lying east of Sumatra, part of Indonesia * Banca, Pyrénées-Atlantiques, a commune of the Pyrénées-Atlantiques ''département'', France * Banca, Tasmania, a locality in Tasmania, Australia * ...

(the latter was sold to Banca Popolare di Marostica in 2010), and Credito Veronese (Creverbanca) in 2003. In 2004 the bank acquired Finproget. In 2005 Banca Modenese and Banca Farnese (some branches of the latter was sold to Banca Centropadana in 2014) were acquired. In 2008 Banca di Credito e Risparmio di Romagna joined the banking group. In 2012, Carife would be merged with its subsidiaries: Banca Popolare di Roma, Banca Modenese, Banca di Credito e Risparmio di Romagna and Finproget. Eventually Banca Popolare di Roma and Banca Modenese became divisions of the bank.

Insolvency

In 2013 the bank was under special

by the Ministry of Economy and Finance. The last annual report of the bank shown the group had a shareholders' equity of €374 million, with a Tier 1 capital ratio of 6.41% as at 31 December 2012. Fondo Interbancario di Tutela dei Depositi had planned to bail-out Banca Marche, Banca Etruria, Carife, and CariChieti for more than €2 billion in late 2015 (€300 million for Carife announced on 6 May, subject to approval from the

Bank of Italy The Bank of Italy (Italian: ''Banca d'Italia'', informally referred to as ''Bankitalia''), (), is the central bank of Italy and part of the European System of Central Banks. It is located in Palazzo Koch, via Nazionale, Rome. The bank's curre ...

and the

European Commission The European Commission (EC) is the executive of the European Union (EU). It operates as a cabinet government, with 27 members of the Commission (informally known as "Commissioners") headed by a President. It includes an administrative body ...

), but they were bail-out by Italian National Resolution Fund ( it, Fondo Nazionale di Risoluzione) instead, for a recapitalization of about €2 billion in total on 22 November. The 4 banks were the first bail-out in Italy since Bank Recovery and Resolution Directive was in force in Italy. The

was the national resolution authority of the Single Resolution Mechanism. The Italian National Resolution Fund had also injected a further €1.7 billion in total to the 4 banks to cover the losses. On 3 May 2016, Decree-Law N°59/2016 was announced, which the retail investors of the bond of the 4 banks would be refunded (up to €100,000, same as

deposit insurance Deposit insurance or deposit protection is a measure implemented in many countries to protect bank depositors, in full or in part, from losses caused by a bank's inability to pay its debts when due. Deposit insurance systems are one component of a ...

) if they purchased the bond on or before 12 June 2014, the date of Bank Recovery and Resolution Directive was passed in the European Parliament. The decree-law was a response to criticism of the bail-in of all investor of the bank, which Italian bank often sold risky bond to their depositors. The refund scheme: ''Fondo di solidarietà'', would be managed by FITD.

Nuova Carife

On 22 November 2015 a "good bank" Nuova Cassa di Risparmio di Ferrara S.p.A. (Nuova Carife), was formed, with a share capital of €191 million. The bank had a Tier 1 Capital ratio of an estimated 9% in a group (consolidated) basis. The bad debt of the old bank was transferred to a single "bad bank" REV - Gestione Crediti, which was shared with Carichieti,

Banca Etruria Banca Tirrenica S.p.A. formerly known as Nuova Banca dell'Etruria e del Lazio S.p.A. was an Italian bank based in Arezzo, Tuscany. The bank was re-established on 22 November 2015 as a good bank of the original Banca Popolare dell'Etruria e del Lazi ...

and

Banca Marche Banca Adriatica S.p.A. trading as UBI Banca Adriatica and formerly known as Nuova Banca delle Marche S.p.A. was an Italian bank based in Jesi, Marche region. It has operations in several regions in central Italy, but concentrated in Marche regio ...

. While the old bank would be liquidated, which the shareholders and subordinated bond holders would receive nothing due to bail-in. , the banking group had an equity of €161 million and a CET1 Capital Ratio of 8.22%. In March 2016 a plan to absorb Commercio e Finanza was announced. Previously it was planned that the ex-subsidiary sold assets and liabilities to Nuova Carife. On 2 March 2017

signed a contract to acquire Nuova Carife for a nominal fee of €1, with conditions that the national resolution fund recapitalized the bank, as well as selling the non-performing loan to the market. At 31 December 2016 Carife Group had a negative net equity of €66 million, due to heavy loan write-down during 2016 financial year. On 20 June, the bank announced that a gross book value of €343 million NPLs (the net book value after write-down was not disclosed in the press release) were sold to Atlante II and Credito Fondiario for a price equal to around 19% of the gross book value. The bank was also recapitalized by the national resolution fund for €290 million. On 30 June, the takeover was completed. On 1 July, a plan to absorb Nuova Carife into

was announced. It was completed in the same year.

Shareholders

Fondazione Cassa di Risparmio di Ferrara was the owner (54.82%) and parent entity of the old Carife, which took most of the charity function from the bank itself since 1992. Banca Popolare di Cividale and Banca Popolare di Puglia e Basilicata also owned 0.72% and 0.23% shares of old Carife respectively; Banca Popolare di Bari and Banca Valsabbina did not disclosed their ownership ratio, but write-down the value of the shares in 2013 financial year. , Nuova Carife also owned 1.08815% shares of BP Cividale, 0.36269% shares of BP Puglia e Basilicata, 0.56151% shares of BP Bari and 1.43988% shares of Banca Valsabbina as the relic of previous cross-ownership. The new Carife was owned by Italian National Resolution Fund ( it, Fondo Nazionale di Risoluzione) from 2015 to 2017, a transitional fund that would eventually merge into Single Resolution Fund of the European Union.

was the last owner of the bank.

Banking foundation

Fondazione Cassa di Risparmio di Ferrara known as Fondazione Carife, is an Italian charity organization based in Ferrara. The foundation was the old legal person of the savings bank Cassa di Risparmio di Ferrara, which an Italian banking law required all savings banks had to be incorporated as ''

'', leaving a separation of the banking activity and charity function 1992. The foundation was the major shareholder of Cassa di Risparmio di Ferrara until its failure. In 2015, all the shareholders and subordinated bond holders were bail-in the failure of the bank. The foundation had a net assets of €55,140,130 as at 31 December 2014, but including the shares of the bank which had an accounting value of €72,415,205.53. The foundation had supported the restoration of

Santa Maria in Vado, Ferrara Santa Maria in Vado is a church located on Via Borgovado number 3 in Ferrara, Region of Emilia-Romagna, Italy. History The church derives its name from a guado or fording (''vado'' in dialect) that was located nearby. A church at the site was do ...

as well as a painting by Bastianino in

Ferrara Cathedral Ferrara Cathedral ( it, Basilica Cattedrale di San Giorgio, ''Duomo di Ferrara'') is a Roman Catholic cathedral and minor basilica in Ferrara, Northern Italy. Dedicated to Saint George, the patron saint of the city, it is the seat of the Arch ...

, and ''Resurrezione '' in Oratorio dell'Annunziata, Ferrara.

Equity investments

;banks * Banca Carim (0.37968%) * Banca Popolare di Bari (0.56151%) * Banca Popolare di Cividale (1.08815%) * Banca Popolare di Puglia e Basilicata (0.36269%) * Banca Valsabbina (1.43988%) *

Cassa di Risparmio di Cento Cassa di Risparmio di Cento S.p.A. (known as CR Cento or Caricento in short) is an Italian savings bank based in Cento, Emilia-Romagna, which serve the Province of Ferrara, Bologna and Modena. History The bank was found on 26 April 1844 in Cento, ...

(0.04975%) * Cassa di Risparmio di Cesena (0.06257%) * Istituto Centrale delle Banche Popolari Italiane (0.00094%; sold in 2017) ;other companies * Compagnia Investimenti Sviluppo (0.98490%) * (0.56123%)

References

External links

*
Banking foundation of Cassa di Risparmio di Ferrara
{{Authority control Defunct banks of Italy Bank failures Companies based in Ferrara Banks established in 1838 Banks disestablished in 2015 Re-established companies Banks established in 2015 Banks disestablished in 2017 BPER Banca Italian companies established in 1838 Italian companies disestablished in 2015