Italy's Banking System is 'Robust', PM Says as Bank Shares Rebound
Italy's prime minister said Thursday that the country's banking system was "much more robust" than investors thought after three days of meltdown of banking shares on the Milan stock exchange.
As shares recovered in early trading Thursday after plunging on fears about the country's burgeoning toxic loan crisis, Matteo Renzi took to the pages of the Il Sole 24 Ore daily to try to reassure skittish investors.
"There's manoeuvring on some banks, full stop. The system, in my opinion, is much more robust than what some investors legitimately fear," Renzi said in an interview published in Thursday's edition.
Data showing non-performing loans hitting a new record high on top of Italy's already struggling economy undermined confidence at the start of the week.
Banking stocks plummeted across the board, with the bank considered the world's oldest, Banca Monte dei Paschi di Siena (BMPS), briefly suspending trading on Tuesday.
However shares in BMPS soared by more than 19 percent on a higher Milan stock exchange in Thursday's morning session, after a more than 22-percent plummet a day earlier.
Ahead of Thursday's BMPS rebound, Renzi told the Italian daily that he believed it was "best" to leave it to market forces to find a solution for the Italian banking sector.
Source: Agence France Presse
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