ROME: The Italian government and political parties have reached an accord to allow shareholder meetings of cooperative banks to set a 5 percent limit on voting rights for two years, sources with knowledge of the matter said on Thursday.
The agreement would water down plans to convert the top 10 cooperative banks, known as "Popolari", into joint stock companies by abolishing rules which currently limit every shareholder to a single vote.
Political sources said the agreement should allow proposed legislation to be amended to allow shareholder assemblies to set a 5 percent cap on voting rights based on a simple majority vote.
The measure, currently being examined in the parliamentary finance committee, would be in force for two years, allowing a softer transition into the new system.
The reform of the biggest Popolari, intended to prepare the sector for more consolidation, have been strongly resisted by the banks, which have considerable political power through their connections in many Italian regions.
Bank executives had been pushing for limits on the size of shareholdings.
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