January 7, 2013 / 8:15 AM / 5 years ago

Italian banks rally on delay to new bank capital rules

MILAN, Jan 7 (Reuters) - Italian listed banks rallied at the open on Monday on news that global regulators had given lenders four more years and greater flexibility to build cash buffers, a move that should allow banks to inject more money into Italy’s battered economy.

Italy’s biggest bank UniCredit was up 3.4 percent at 0707 GMT with peer IntesaSanpaolo up 2.8 percent. Struggling Banca Monte dei Paschi di Siena was suspended limit up after jumping 6 percent in early trading.

“The fact that regulators eased the liquidity cover ratio is very positive for banks in general. They will have more liquidity to play with,” said Alberto Gallo, an analyst with Royal Bank of Scotland. “I expect the rally to continue.”

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