After an already disastrous start to the year, Italian banks plunged 30% following the Brexit vote. Obviously there is no direct link between Brexit and Italy, but the uncertainty of the UK leaving the EU had ripple effects on Italy, shaking up its very fragile banking sector. Although the problems are far from unknown or new, things have accelerated lately with the resolution of non-performing loans (NPL) and potential bail-in / bail-out for the weaker banks. How long will it take for the country to find a credible solution and will it be sufficient?
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