Italy, which obtained 68% of MPS as a result of a 2017 bailout, has cut much of its stake to 4.9% through a series of share placements over the last two years and following MPS’ successful takeover of Mediobanca.

“Today we have less than 5%. I don’t rule out selling it, but there’s no rush,” Meloni said during her traditional New Year’s press conference.

Reuters reported in November that Rome was counting on another future merger deal to cut this shareholding, focusing on a long-held plan to combine MPS with rival Banco BPM.

Meloni said the government had no significant influence over MPS given its small stake, but the prospect of MPS creating a competitor to industry leaders UniCredit  and Intesa Sanpaolo through an M&A deal should be viewed positively.

“I think that (a third leading banking group) would be beneficial to our banking system as a whole, but the government does not have the authority or the means to do this,” she said.

Meloni added she was not worried about an investigation by Milan prosecutors into MPS’ acquisition of Mediobanca.

“I am not concerned about the ongoing investigation into MPS. Even the prosecutors have said that there is nothing illegal about the government’s actions,” Meloni said.

Prosecutors are probing MPS chief executive Luigi Lovaglio and the bank’s top two shareholders – construction tycoon Francesco Gaetano Caltagirone and EssilorLuxottica CEO Francesco Milleri, who heads the Del Vecchio family’s Delfin vehicle.

They are looking into whether Lovaglio, Caltagirone and Milleri acted in coordination while keeping supervisory authorities and investors in the dark.