Coronavirus: Italian banks try to make up for lost time

Entering a potential credit crisis, when they are still battling an old one, leaves Italy’s banks exposed. That means strong government backing is more important than ever.

People queue for food in a street in Italy after stockpiling left many supermarket shelves bare

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After the lockdowns in response to the coronavirus pandemic spread across Europe this March, bankers in Italy watched with rising anger and frustration as other states announced massive guarantee programmes for new loans.

German finance minister Olaf Scholz called his stimulus package to protect businesses – including an unlimited amount of bank-channelled loans from state development bank KfW – a bazooka.

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