The Bank of Italy has placed Banca Progetto, a small privately-held lender owned by the investment firm Oaktree Capital Management, under special administration. This action was taken after the bank faced ongoing management issues and legal challenges. Independent administrators have been appointed to oversee the bank’s operations.
In an official statement, Banca Progetto confirmed that the Bank of Italy’s decision to intervene early was aimed at ensuring better supervision and restoring sound management conditions. This move dissolved the bank’s existing board of directors.
This development follows a series of issues for Banca Progetto. Back in October, the bank was placed under court administration after allegations surfaced of it lending money to individuals linked to mafia charges. The headquarters of the bank was raided by tax police as part of the investigation.
The financial troubles of Banca Progetto have also impacted its ownership structure. Last year, Oaktree Capital struck a deal to sell the lender to private equity firm Centerbridge Partners. However, the transaction was never finalized, leaving the bank in a state of financial uncertainty.
Banca Progetto, known for its focus on lending to small and mid-sized businesses in Italy, now faces a challenging period as it works through these administrative and legal hurdles.
