The Italian Banca Carige may have to be closed if no buyer is found for the troubling bank from Genoa. European banking regulators fear that, reports Reuters news agency based on insiders.

Banca Carige has been in financial trouble for some time. At the beginning of this year, the European Central Bank (ECB) intervened by appointing administrators. A spokeswoman for the ECB calls the message “speculation.” According to her, the supervisor fully trusts that the administrators will be able to put their affairs in order. The ECB is pushing for a merger with a more stable industry counterpart.

The Italian banking sector has been a major headache file for both Rome and Brussels in recent years. Especially the large size of portfolios with bad loans are a problem. Monte dei Paschi di Siena, for example, had to be saved with billions of euros in government money.

Bad loans are also still an issue at the large UniCredit financial group. According to sources from news agency Bloomberg, the bank is currently preparing to sell up to 5 billion euros in bad loans. UniCredit itself did not want to respond to that message.

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