Italy's new prime minister, Paolo Gentiloni, said on Tuesday that his government would be ready to take action to support the country's troubled banking sector.
"I want to say very clearly that the government ... is ready to intervene in order to guarantee the stability of banks and the savings of our citizens," he told the Chamber of Deputies in his first address as prime minister.
Monte dei Paschi di Siena, Italy's third-biggest lender, is pressing ahead with a last-ditch attempt to raise 5 billion euros of fresh cash it needs from the market to stay afloat.
However a Treasury source said on Monday the state was ready to pump capital into the bank, one of several Italian lenders suffering from bad loans.
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