ROME, Dec 15 (Reuters) – Measures envisaged in Italy’s 2026 budget could have “negative implications” on banks’ liquidity as they might prompt lenders to cut interest paid on deposits to lower taxes, and hence reduce liquidity buffers, the European Central Bank (ECB) said on Monday.
Measures in the budget affecting the financial sector, which also include curbs on the way banks use interest expenses to lower their tax bills, are worth more than 11 billion euros ($12.93 billion) through 2028, according to Treasury estimates.
($1 = 0.8508 euros)
(Reporting by Giuseppe Fonte, editing by Gavin Jones)
