EMCC European Monitoring Centre on Change

Banco Popolare

Banco Popolare

Geographic Location

Country: Italy
Region: Verona; Veneto; Nord Est
Location of affected unit(s): Verona; Lodi; Novara


Sector: Financial services
Financial and insurance activities
64 - Financial service activities, except insurance and pension funding
Number Employed: 21000

Employment Effects

Announcement Date: 13-12-2006
Planned Job Reductions min: 1350
Planned Job Reductions max: 1350
Type of Restructuring: Merger/Acquisition
Employment Effect Start: 01-01-2007
Foreseen End Date: 01-01-2010
Direct Dismissals: 1350

Additional Information

The Banco Popolare di Verona-Novara (Bpvn) e Banca Popolare Italiana (Bpi) are two important credit institutes headquartered in the North of the country. On 13 December 2006, the boards of directors of Banca Popolare Italiana and Banco Popolare di Verona e Novara approved the plan to merge the two banks, which includes establishment of a new banking company in the form of a cooperative company. The name of the new credit institute will be Banco Popolare. It will have its registered office in Verona with administrative head offices in Lodi and Verona and stable organisation also in Novara. The Banco Popolare will focus its business on savings and loans, in its various forms, paying special attention to the territory where its subsidiary banks operate and where the group has its branch network. The credit institute generated by the merger will have around 21,000 employees and will be ranked third in Italy by number of branches (nearly 2,200), with more than 3 million customers, mainly families and small and medium sized businesses in Northern Italy. The reorganisation plan envisages a reduction of personnel costs, with the shading of 1,350 jobs between 2007 and 2010. The plan regards that around 840 redundant workers will benefit from economic incentives for voluntary resignation, whereas 510 redundancies should result from lower job turnover.