Italian banks avoid meltdown, reining in systemic risk

Milan

NOW that worries over Italian banks suffering a meltdown have subsided, lenders need to persuade investors that they can make money.

Both optimistic buyers and more sceptical investors, gathered on the shores of Lake Como for the annual Ambrosetti Forum, agree that momentum for bank shares will depend mainly on an acceleration of economic growth and higher interest rates, while poor governance and business-model sustainability have become the main risks for the industry.