Italy mulls options to support its banks after Brexit hits shares

[ROME] The Italian government is looking at various policy options to help its banks and prevent further falls in their share prices, but no decision has yet been taken, a spokesman at the Economy Ministry said on Monday.

Italian bank stocks slumped on Friday on the outcome of the Britain's vote to leave the European Union, with UniCredit and Intesa Sanpaolo falling more than 20 per cent each. Banking stocks opened mostly higher on Monday in choppy trade, but then turned negative.

"We are considering various forms of possible support but no decision has been taken yet," the spokesman said.

He declined to comment on newspaper reports on Monday that said the government planned to take stakes in ailing banks, financed through the issuance of new public debt for around 40 billion euros (S$60.03 billion).

REUTERS

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