Banca Monte dei Paschi di Siena's (BMPS) deputy chief executive told CNBC he is optimistic that its massive rights issue launched on Monday will be enough to bolster the troubled lender's finances.
The Italian bank's stock was suspended on opening for a second day on Tuesday, after the launch of a 5 billion euro ($6.8 billion) share sale. BMPS shares' 20 percent rise on Monday was attributed to technical difficulties.
But BMPS' CFO and Deputy CEO Bernardo Mingrone said he wouldn't read investor intentions into the stock's movements or failure to open.
Mingrone defended the size of the bank's rights issue, which is almost twice the size of its market capitalization, and was raised to 5 billion euros from 3 billion euros. He said it would act as a buffer ahead of the results of European Central Bank (ECB)'s stress tests, or asset quality review (AQR).
"What we did by increasing the size is position ourselves walking into AQR at a par with our best competitors in the market," he said in an exclusive interview.