Reports said that Arpe was keen to get the bank involved in sector consolidation, but had complained of "psychological intimidation" by Geronzi.

FORBES: Capitalia Next On The Block?

Its chairman, Cesare Geronzi, and chief executive, Matteo Arpe, had been locked in a public spat earlier this year over the bank's strategy.

FORBES: Capitalia Next On The Block?

Arpe was expected to be ousted at a board meeting in February, but following a public apology to Geronzi, his position was secured.

FORBES: Capitalia Next On The Block?

Capitalia still has some work to do, but Matteo Arpe, who took over as its boss nearly two years ago, has earned the confidence of the market.

ECONOMIST: Italy's way with bank reform