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Italy sets up safety net for financially fragile banks

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By Euronews
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Italy sets up safety net for financially fragile banks

Italy’s strongest financial institutions have agreed to set up a $5.7bn banking fund in order to provide a safety net to shore up the more financially fragile banks.

The Italian state is keen to avoid any crisis in the eurozone’s fourth biggest banking sector.

The government wants to bolster the sector, which has under performed in EU stress tests and is suffering under the weight of €360bn of bad loans.

Rome wants to give the impression that this is a supportive industry initiative.