The PBZ and the Italian Union last Friday signed a cooperation agreement allowing Union members the use certain bank products and services under more favourable terms.
The bank said in a statement today it decided to cancel the agreement because of the "unnecessary politicisation of the entire business project".
In a statement signed by Executive Committee chairman Silvano Zilli, the Union said it took note of the decision with regret and that it understood and accepted the reasons which the bank said forced it to make the decision.
"The Italian Union condemns the politicisation and instrumentalisation of the initiative which were carried out through a defamatory and discriminating action by some public media and political parties, and expresses its bitterness in connection with the case and the clear attempt to grossly distort true facts which deprive only the Italian Union and its members of a right recognised to all other categories of citizens," read the statement.
The Union voiced certainty the negative stance was due solely because of ethnicity and was caused by factors which were hostile to the Italian Union and the whole Italian national community.