ECB’s Visco: State backstop for Italian banks is needed at present

Bank of Italy head and European central bank (ECB) governing council member Ignazio Visco crossed the wires last hour, commenting on the persisting Italian banking crisis.

Key Quotes:

“State backstop for Italian banks is needed in this environment”

“There's a range of monetary policy tools available for the financial sector”

“Eurozone recovery is fragile”

“Limited problems risk impacting trust in the banking system”

“Tighter credit post-Brexit would hit Italian investments”

“Italian bank profits were hurt by capital strengthening request”

“Also hurt by high level of NPLs”

“NPLs are a serious but manageable problem”

“Most Italian banks are able to manage the current situation”