Schaeuble says no risk of bank crisis despite troubles at Italy’s lenders

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Finance Minister Schaeuble speaks at a news conference on 2017 budget and financial plan till 2020 in Berlin

BRUSSELS (Reuters) – German Finance Minister Wolfgang Schaeuble said on Tuesday he did not see any danger of a banking crisis erupting.

His comments come at a time when Italy’s banks – struggling with capital shortfalls and non-performing loans – have become a cause for concern in Europe, especially after Britain voted to leave the European Union. Italy is in talks with the European Commission to allow public support for its weakest lenders.

Speaking about demands for the EU to grant banks state aid, Schaeuble said such discussions would not reduce the risk of a banking crisis.

(Reporting by Tom Koerkemeier; Writing by Michelle Martin)

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