italian banking sector

ECB stimulus package

Spanish banks’ need for ECB financing 2nd in EZ

BS Markets | Spanish banks’ recourse to Eurosystem financing stood at almost 170 billion euros in May. Second only to Italy’s in Eurozone, whose needs amount to around 250 billion euros. In both cases these volumes represent  15% of GDP and between 6 and 7% of the size of the sector.

Risks are diminishing in the Italian banking sector

The Italian Banking Sector Has A False Sense Of Security

The latest Financial Stability Report by the Bank of Italy concludes that “risks are diminishing in the banking sector”. This could give a false sense of security. The decline of non-performing loans reflects one-off write-downs rather than an improvement in credit quality.