The rout in Italian banks stocks is due to a misunderstanding of the euro zone's post-financial crisis regulatory regime, the Italian finance minister said on Friday.
Pier Carlo Padoan, who has led Italy's ministry of economy and finance since 2014, said that markets had panicked unnecessarily after a string of Italian banks reported on Monday that the European Central Bank (ECB) had asked for more details of Italian banks' impaired loans.
"Some information request, which was totally neutral, technical and fine, was interpreted as the way the new world impacts on banks. This is clearly something that needs to be fixed," he said at a CNBC panel on Friday at the World Economic Forum in Davos, Switzerland.
Some European banks, particularly those in Italy, are saddled with soured loans that cramp their ability to make new loans and thus stimulate the real economy.