The assets under management of Italian private banks dropped 12 per cent last year to €504 billion ($701 billion), according to a new study cited by Reuters.

The report, based on a study by the Italian consultancy Magstat, said that the market of assets available for management fell 13 per cent to €734 billion and the total value of assets held by specialised private banking operators took a €70 billion dive in 2008.

According to the news service, Magstat’s report concluded that the sudden losses by international stock exchanges last year were the chief cause of the slowdown in Italian private banking.

In other findings, the report highlighted the fact that for the first time in seven years no new private banking operators entered the Italian market in 2008. In fact, as reported by WealthBriefing in June, Citi is to sell its Italian private banking unit, with Spain's Santander rumoured to be the buyer.

Via private bank divisions and stand-alone units, 60 per cent of assets under management in Italy are controlled by 59 Italian commercial banks, Magstat is reported to have found. According to the consultancy, Intesa Sanpaolo, Uni Credit and UBI Banca together have 40.4 per cent of the market, foreign investment banks account for 15.6 per cent, while independent Italian private banks have 8.6 per cent.