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Bank of Italy Doesn’t Rule Out Setting Up Bad Bank, Visco Says

The Bank of Italy isn’t ruling out setting up a bank to take over non-performing loans to increase funding capabilities for the nation’s lenders, Governor Ignazio Visco said.

Actions at a number of banks in managing non-performing loans are going “in the right direction,” Visco, who sits on the European Central Bank Governing Council, said today in a speech at the Assiom Forex conference in Rome. “More ambitious interventions, whose compatibility with European rules must be pondered, are not to be ruled out.”