The European Central Bank ( ECB ) has taken control of Italy ’s Banca Regina following the resignation of the majority of its board of directors , after they failed to raise much - needed capital . A survey of purchasing managers at Italian manufacturing companies published Wednesday by IHS Markit, a research firm, showed that business conditions deteriorated in December, and “there appears little sense of optimism that the current soft patch will come to an end in the near future.” The ECB promptly appointed a three - person team to manage the struggling mid - sized bank , the first occasion it has done so since gaining greater powers to oversee lenders in 2014 . Italy ’s poor economy and political disorder has lent extra weight to Banca Carige ’s fate potentially impacting the eurozone ’s financial system . The ECB ’s intervention appears to have encouraged investors that a larger crisis is not imminent , but uncertainty over the lender could yet provoke problems .
The European Central Bank ( ECB ) has taken control of Italy ’s Banca Regina following the resignation of the majority of its board of directors , after they failed to raise much - needed capital . The ECB promptly appointed a three - person team to manage the struggling mid - sized bank , the first occasion it has done so since gaining greater powers to oversee lenders in 2014 . Italy ’s poor economy and political disorder has lent extra weight to Banca Carige ’s fate potentially impacting the eurozone ’s financial system . The ECB ’s intervention appears to have encouraged investors that a larger crisis is not imminent , but uncertainty over the lender could yet provoke problems .