Italian banks hold most of Europe's loan reserves – EBA

Italian lenders account for more than one-fifth of the total loan-loss reserves of European banks, and have set more cash aside to cover soured loans than Cypriot, Greek, Irish and Portuguese firms combined.

Total allowances for expected credit losses at Italian banks stood at €91 billion ($103 billion) at end-June. Aggregate allowances across 29 countries included in a European Banking Authority (EBA) assessment were €421 billion.  

Of this total, €343 billion (82%) were held for stage three