ECB requests new funding plan from Banca Carige, shares plummet

Italian lender Banca Carige was ordered by the European Central Bank to present a new funding plan and a fresh strategic roadmap to counter falling deposits and profitability and meet compliance and supervisory requirements.

Shares in the Genoa-based lender plummeted on the news.

Last month, Banca Carige restated its 2015 accounts to show a net loss of €102m versus an origginal estimate of €45m.

The bank had been left with a market capitalisation of €525m after a 75% drop in its share price over the last year.

It had approximately €30.2bn in assets as of 31 December 2015, down from €38.3bn one year earlier, and €2bn in cash.

Banca Carige was forced to go cap in hand to investors for €850m after the ECB's last health-check of the sector detected a shortfall in its capital base.

As of 08:27 shares in Banca Carige were down by 8.25% to €0.58.