Italian banks may be rallying on Monday, but the sector has still to shake off the concerns over their hefty bad loan books.
Out of many of the euro zone's banking systems, Italy's has been one of the most scrutinized, with the sector facing some 360 billion euros ($411.5 billion) in bad loans.
However, despite the turbulence, experts suggest the country's financial system isn't nearly as bad as the market thinks.
"The actual issue of the Italian banking system has been by far highly overestimated," Valerio De Molli, managing partner of The European House – Ambrosetti, told CNBC on the sidelines of the Ambrosetti workshop, over the weekend.
"If you look into the gross amount of non-performing loans (NPLs), you have quite an immense figure; we are the worst in Europe in comparison to total lending. We are one third higher than European average, that's bad."
"However, if you look into the net figures, all relevant banks have already amortized those costs and eventual risks. So that's one fact which is underestimated and under-evaluated in my opinion."