Route ahead unclear for Italian banks

Monte dei Paschi di Siena

Shares in Italy's banking sector fell following the electorate's rejection of proposed constitutional reforms in a referendum and the subsequent resignation of the country's prime minister Matteo Renzi.

The route ahead was unclear for Italian banks, and in particular for the troubled lender Monte dei Paschi di Siena (MPS).

The bank is agreed by all observers to have a major need for recapitalisation. But the possible routes to doing so all present problems. Other Italian banks are themselves

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