The newly-set up bank bailout fund in Italy — dubbed Atlas — will help clear uncertainty over the financial system, the country's central banker said as senior officials aim to calm market concerns over the size and impact of the fund.
Speaking at a press conference at the International Monetary Fund (IMF) meeting in Washington, D.C., Bank of Italy's Governor Ignazio Visco reiterated previous statements that the fund — a private-sector initiative to buy up struggling Italian lenders' bad loans — is not state aid.
Shares in Italian banks have fallen sharply since the start of the year as fears over non-performing loans on their books grow.
"(Is it) something that solves all the problems of the banking sector after seven, eight years of 25 percent fall in industrial production once and for all? Obviously not. But it is a good chunk in a process, which has to be a gradual process. You don't solve difficulties on the asset side even if you have taken into account a good part of the expected losses that are coming from that side in a matter of months or over one or two years," Visco said.