Italian Banks Rank Among Worst by Texas Ratio: Chart

As Italy considers options to recapitalize its banks, the Texas ratio, a measure of bad loans as a proportion of capital reserves, illustrates the scale of the problem. A figure above 100 percent is a warning signal the banks need a solution quickly, Peter Garnry, head of equity strategy at Saxo Bank A/S, wrote in a research note on Tuesday.

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(Corrects data for Spanish banks on graphic.)

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