Italy set for bank reforms

Italian Premier Silvio Berlusconi’s Cabinet yesterday approved a reform of Italy’s central bank that includes a seven-year fixed term for its governor - attempting to restore the bank’s credibility after weeks of attacks over its handling of two recent bank takeover cases.

Economy Minister Domenico Siniscalco drew up the reform after accusations that central bank governor Antonio Fazio discriminated against two foreign banks bidding for control of two Italian banks earlier this year.