Italy's economic minister Pier Carlo Padoan defends banking system

Italy’s economy minister, Pier Carlo Padoan, said yesterday that his country’s financial system remained solid as the government faced a mounting furore over the rescue of four banks that wiped out the savings of thousands of retail investors.

Italy saved Banca Marche, Banca Etruria, CariChieti, and CariFe at the end of November, drawing €3.6bn from a crisis fund financed by the country’s healthy lenders.

Tougher EU rules on bank rescues, aimed at shielding taxpayers, meant shareholders and holders of junior debt were hit, unleashing protests against the government.