Italian banks Pain ahead, whatever the result
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Posted On: 12/03/2016 8:28:43 AM
Italian banks Pain ahead, whatever the result
Even if Italians approve their leader's planned changes, the banks are not out of the woods yet.
"Regardless of whether we get a yes or a no vote, Italian banks are in very poor shape and they are going to have to have a period of intense and painful reconstruction going forward," said City Index's research director Kathleen Brooks.
For now, Italy may try to muddle through. But with 17% of its banks' loans souring fast, and state finances burdened by a debt pile already worth 133% of GDP, Italy's financial sector could prove too big to save.
Even if Italians approve their leader's planned changes, the banks are not out of the woods yet.
"Regardless of whether we get a yes or a no vote, Italian banks are in very poor shape and they are going to have to have a period of intense and painful reconstruction going forward," said City Index's research director Kathleen Brooks.
For now, Italy may try to muddle through. But with 17% of its banks' loans souring fast, and state finances burdened by a debt pile already worth 133% of GDP, Italy's financial sector could prove too big to save.
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