Bank of Italy head calls for power to remove executives

Published February 09, 2013

| Reuters

Bank of Italy Governor Vincenzo Visco called on Saturday for more powers for regulators to step in at troubled banks but defended his institution's oversight of Monte dei Paschi di Siena and said the bank was not at risk of failing.

Responding to criticism about banking oversight in the case of the Tuscan lender, Visco repeated that central bank supervisors had acted appropriately but asked for more powers to remove bank executives in exceptional cases.

"The supervisor should have the power to intervene when - based on solid evidence - it believes it is necessary to oppose the appointment of (banks') executives or to remove them" Visco, who also sits on the European Central Bank governing council, said in a speech to a finance conference.

(Reporting by Francesca Landini; editing by James Mackenzie)

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