IMF urges action on Italian bank bail-in plan

The International Monetary Fund (IMF) has called for action over concerns relating to the bail-in of retail investors in Italy, noting “very high” amounts of non-performing loans and slow judicial processes were straining bank balance sheets.

Financial industry reforms “are critical to entrench financial stability and support the recovery,” the IMF said in a statement following its regular review of the Italian economy.

The Washington-based fund said non-performing loans appeared to be stabilising at around 18% of total loans.