Italy to Focus on Savings and SME Lending in Potential Banco BPM-Credit Agricole Agreement

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Sep 10 2025

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Source: Reuters

Focus on Small Business Lending: Italy aims to protect small business lending and domestic savings in the potential merger between Banco BPM and Credit Agricole Italia, emphasizing the importance of local community support over the banks' nationalities.
Merger Dynamics: Banco BPM is seeking a merger partner after fending off a takeover by UniCredit, with Credit Agricole Italia being a more feasible option compared to Monte dei Paschi di Siena, which is currently involved in its own acquisition.
Market Impact: A merger with Credit Agricole Italia could significantly increase Banco BPM's market share and earnings, with analysts predicting a boost in earnings per share and a rise in branch market share from 7% to 12%.
Regulatory Considerations: Any merger would require government approval, as Italy can impose conditions on transactions involving key corporate assets for national security reasons, reflecting the government's focus on domestic economic stability.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.