Italian banks suffer

SHARES in Italy’s biggest bank fell 9pc yesterday, wiping £1.1bn off its value amid growing doubts about how it would fare in a financial crisis.

Trading in Unicredit was temporarily suspended as shareholders pulled their money out after stress tests showed the lender was at risk.

The European Banking Authority tests found the bank would be hit hard in a downturn but would still remain solvent.

Italy’s Banca Monte dei Paschi di Siena was the worst performer, with the stress tests showing it would collapse in a severe recession.

Investors were reassured by a rescue package agreed on Friday.