Published by Global Banking & Finance Review®
Posted on January 28, 2026
2 min readLast updated: January 28, 2026
Italy's deposit fund approves a 750-million-euro rescue for Banca Progetto, involving major banks to stabilize and de-risk the bank's assets.
MILAN, Jan 28 (Reuters) - Italy's deposit protection fund (FITD) said on Wednesday it had agreed a 750-million-euro ($897,60 million) binding rescue plan for Oaktree-owned Banca Progetto, involving the country's five biggest banks.
Banca Progetto, a small digital bank focused on lending to small- and mid-sized Italian businesses, was put under special administration by the Bank of Italy last year to ensure adequate supervision of the bank's operations and restore sound and prudent management conditions.
The bank was also placed under judicial administration from October 2024 to July 2025 over alleged lending to a person arrested on mafia-related charges. The measure was revoked by an Italian court after the bank complied with the court's requirements.
Under the plan, FITD will become a shareholder in Banca Progetto by injecting 750 million euros. It will then sell part of its stake to a vehicle owned by Banca Monte dei Paschi di Siena, Banco BPM, BPER, Intesa Sanpaolo and UniCredit, while retaining up to 9.9% holding.
FITD and the five lenders will also take part in the de-risking of Banca Progetto's assets, backed by fund guarantees.
The fund said it expected to close the deal by March.
($1 = 0.8356 euros)
(Reporting by Gianluca Semeraro, editing by Alvise Armellini and Gavin Jones)
A deposit protection fund is a financial safety net that protects depositors' funds in the event of a bank failure, ensuring that customers can recover their deposits up to a certain limit.
Judicial administration is a legal process where a court appoints an administrator to manage a company's affairs, often due to financial difficulties, to protect creditors and ensure proper management.
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