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Italy market watchdog bans short selling on Monte Paschi shares

The entrance of the Monte dei Paschi di Siena bank headquarters is seen in downtown Siena, August 16, 2014.REUTERS/Stefano Rellandini

MILAN (Reuters) - Italy's Consob has banned short selling on Monte dei Paschi's shares on Monday and Tuesday, the Italian market regulator said in a statement.

Shares in Italy's third biggest bank lost more than 17 percent on Monday after results from a pan-European health check of lenders showed on Sunday that Monte dei Paschi faced a capital shortfall of 2.1 billion euros - the biggest gap among the 130 lenders under scrutiny.



(Reporting by Francesca Landini, editing by Valentina Za)