World Economy

Italy’s ‘Bad Bank’

Italy’s ‘Bad Bank’Italy’s ‘Bad Bank’

 Italy is considering setting up a state-backed “bad bank” to help clean up its banking sector, Economy Minister Pier Carlo Padoan said. Bad loans force lenders to set aside money to cover expected losses. They have become the main problem for Italian banks, which fared the worst in a Europe-wide health check of the sector last year.