State intervention is not required to support Italy’s banks but the government will focus on measures aimed at supporting the restructuring of the lenders, Italian Economy Minister Pier Carlo Padoan told daily il Sole 24 Ore in an interview published on Saturday. He also said that a state-funded backstop for Monte dei Paschi’s bailout plan is not needed, the role of the state is solely that of guarantor in the sales of bad loans. New European rules on bail-in—hitting investors in a troubled bank before public money is used to prop it up—have created unexpected reactions in different countries.
