Italy private bank assets fell 12 pct in '08

MILAN, July 10 (Reuters) - Italian private bank assets under management fell 12 percent last year to 504 billion euros ($701 billion) mostly because of the sharp market downturn, according to a study by the Magstat consultancy.

In its annual report on Italian private banking, the Bologna firm said the overall market of assets available for management, but not necessarily served by private bankers, dropped 13 percent to 734 billion euros.

"The Italian private banking market underwent a sharp slowdown in 2008," Magstat said in a summary of its report. The full study goes on sale on Monday.

The assets held by specialised private banking operators fell by 70 billion euros "in large part due to the sudden losses by international bourses", it said.

Sixty percent of assets under management was controlled by 59 Italian commercial banks through private bank divisions or stand-alone units.

Intesa Sanpaolo SpA (ISP.MI), UniCredit SpA (CRDI.MI) and UBI Banca SpA (UBI.MI) have 40.4 percent of the market, or 203 billion euros in assets.

Foreign investment banks held 15.6 percent of the market. Independent Italian private banks had 8.6 percent.

No new foreign private banking operators entered the Italian market last year, after seven years of new players coming into the market, the report said.

Italy has 38 foreign operators. In 2008, one foreign operator, U.S. investment bank Lehman Brothers Holdings Inc (LEHMQ.PK), collapsed, and Citigroup Inc (C.N) is selling its Italian private banking unit.

An expected Italian tax amnesty on money illegally taken out of the country is expected to give a boost to private bankers, especially Swiss ones. The last amnesty in 2002-2003 returned 73 billion euros to Italy, the study said. (Reporting by Ian Simpson, editing by Will Waterman) ($1=.7184 Euro)