Italy's bank recapitalization and structured bailout plans are now on hold, says Keith Pogson, senior partner at EY.
Sergio Mattarella, the Italian head of state, asked him to freeze the resignation until the budget is approved, The Financial Times reports.
The euro recovered from against the dollar after Renzi's loss in a referendum over constitutional reform was seen as largely expected.
For how tumultuous of a year it's been for business and politics, it's fitting 2016 should end with U.S. banks as an oasis of stability.
European markets closed higher on Monday afternoon despite earlier losses following Italian PM Matteo Renzi's announcement to resign.
Italian shares fell as much as 2% in early trading, but regained their poise as investors look beyond the political risk of the No vote.
Recapitalization of Italy's troubled banks will be harder following the failure of a referendum pushed by Prime Minister Matteo Renzi.
Italy is discussing with the European Commission the terms of a state bailout of ailing bank Monte dei Paschi, Italian daily Corriere della Sera reported on Friday.
Italy is getting ready for a referendum that could overhaul the country’s constitution, and the stakes are high.
The dollar fell on Tuesday as the greenback consolidated its position against most major currencies following a roller-coaster 24 hours
Almost one in every 10 loans on Italian banks' books are non-performing.
Pressure is mounting on Italian Prime Minister Matteo Renzi to remain in power to deal with the potential fallout from the Dec. 4 referendum.
The Brexit vote stunned markets in June, and Donald Trump shocked investors in November. The Italians may be next.
European banks remain in trouble given their high level of NPL's, the hedge fund manager who predicted the 2008 crash said.
European stocks closed lower on Wednesday as traders paused for breath after a strong "risk-on" rally since the Donald Trump's election win.
European markets closed lower Monday as revelations over the weekend increased uncertainty over the upcoming U.S. presidential election.
BMPS CEO Marco Morelli told CNBC Class that the lender expects to carry out the 5 billion euro capital increase before Christmas.
Ratings agency Fitch cut its outlook for Italy on Friday, saying weak growth, high debt and the uncertain outcome of a planned referendum posed risks.
European stocks closed firmly in the red on Thursday, after weak China data triggered a slide in mining stocks.
Deutsche Bank pays more to borrow from other banks than its peers including stragglers in Greece and Italy, Euribor data showed.