EU banking supervisors: No cause for alarm in Italian banks' liquidity levels - Reuters

Citing a senior EU source, Reuters report that European banking supervisors have stepped up their monitoring of liquidity levels at Italian banks following the sharp increase witnessed in government bond yields.

"The checks involve both customer deposits and the interbank market that banks use to lend to each other without requesting collateral, the source said, adding that "no sign of alarm" had been detected," Reuters' Francesco Guarascio noted and added:

"Banks have not suffered any deposit flights either, based on the latest available data. Italian banks' deposits stood at 2.39 trillion euros in July from 2.41 trillion euros in June, when the new government was sworn in, and have been broadly stable in recent months."