Italian banks well capitalised but still face risks-IMF

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Reuters

Increasing provisions for bad loans and developing a market to dispose of impaired assets would shore up the defences of Italian banks, the International Monetary Fund said on Tuesday.

In a report following a mission to Italy, the IMF said the Italian banking system was on the whole well capitalised but lenders still faced risks because of a prolonged recession and their big holdings of domestic sovereign debt.

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