Italy's central bank had threatened to shut down EFG International's Italian offices. Six months later, the Swiss private bank has won a break, but will nevertheless rejig its strategy in Italy.
In May, Italy's banking regulator said it would curb Zurich-based EFG's business in Milan and Como pending an investigation over compliance failings. The setback came just days after the Swiss private bank, which has offices in Genoa as well, reinforced Italy as a key strategic market.
Six months later, EFG said Banca d'Italia is lifting all restrictions, effective immediately. The limitations had been imposed on the former Banca della Svizzera Italiana, or BSI, a Lugano-based private bank acquired by EFG early last year which subsequently imploded under the weight of the 1MDB scandal.
Como Playground
After cleaning up the Italian branches, CEO designate Giorgio Pradelli said EFG will relaunch in Italy, but has shut the branch in Como. The lakeside town north of Milan where film star George Clooney maintains a home has long been known as a summer playground for the wealthy.
Italy, the second-largest hunting ground for private banks in Europe, remains strategically key for EFG, Pradelli said in a statement.
