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<img src = "https://www.investor.bg/images/photos/0266/0000266465-article3.jpg" alt = "Last week, the European Central Bank (ECB) expressed its concern that the currency crisis in Turkey may cause problems for banks of the Old Bank Continent
But the real problem for the banking sector in Europe is Italy and what will happen in the country in the coming months, says analyst Tom Kinmont, a firm sales strategist at ABN Amro "The problems in Italy. … in the next three months will dictate the speech in bnkova industry in Europe in the next three to five years, "he said Kinmont said on CNBC. The Italian economy is the third largest in the EU and the new coalition government in the country is currently working on next year's budget, and its financial plan will be closely monitored by EU officials, and in particular by market players, in response to commitments to increase public spending. Investors worry on rising pensions and social benefits in the context of the high public debt of Italy, the second largest in the euro zone and accounting for about 130% of the gross domestic product If market players do not approve the next budget announced in October, the cost of Italian debt maintenance is likely to rise This could affect European neighbors and cause problems for some European banks that have Italian debts. Quinmont is of the opinion that, in addition to the budget, there may also be other events that could cause problems for European banks agencies should publish their new assessment of Italy in the coming weeks. Italian banks still have a high percentage of non-performing loans, and the uncertainty about Rome's policy makes it increasingly difficult to predict what could happen to the banks as a result. After the sovereign debt crisis in 2011, investors began [19659904] "The problem with Turkey remains on the radar, but it is mainly concentrated at bank level and all eyes will be directed to Italy", says Kinmont
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