BFF Bank SpA’s stock plummeted as much as 61%, the most on record, after the Italian lender disclosed that a regulatory review raised fresh questions about how it labels loans as performing.
A probe conducted by the Bank of Italy found issues relating to the “classification of credit exposure,” which could lead to “additional past due exposure” of as much as €1.3 billion ($1.5 billion), BFF said in a statement Sunday. It will continue to meet its regulatory CET1 requirement, a key measure of capital strength, even if the full amount is re-classified, it said.
The stock was down ...
