Italy's Lending Recovery at Risk as Renzi Bad Bank Plan Stalls

  • Savers are ditching bank bonds to avoid possible losses
  • Lack of quick solution to NPL issue is scaring away investors
Photographer: Tony C French
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Italy’s nascent lending recovery may be short lived.

With non-performing loans touching a record high of 201 billion euros ($219 billion) in November and delays in creating a bad bank even as the European Central Bank ups its scrutiny, lenders may be reluctant to make new loans.