Bank of Italy's Visco says action needed on bank bad loans

Reuters

ROME, Oct 23 (Reuters) - Italian banks must take action tobalance the impact of bad loans on their balance sheets, Bank ofItaly Governor Ignazio Visco said on Wednesday following theEuropean Central Bank's outline of its upcoming review of riskin the banking sector.

He said he did not expect the Italian banking sector toencounter any serious difficulties as a result of the reviewdespite the high overall level of bad loans and said theassessment would probably be in line with what Italianauthorities would expect themselves.

"Against these bad loans, there are reserves and above all,actions which the banks must take to make the system morebalanced and capable of responding," he told reporters.

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