Italian bank system at 'turning point'

(ANSA) - Rome, August 8 - The Italian banking system is at a turning point that will see it put its recent troubles behind it, the economy and finance ministry (MEF) has said.
    In an article in an English-language newsletter, The Narrow Path, the ministry referred to government reforms and a series of interventions for lenders in trouble, including Monte dei Paschi di Siena. "The Italian banking system has long since been waiting for a comprehensive reform addressing structural inefficiencies and structural rigidities," it said. "As of 2014, the Government has defined a comprehensive reform plan while also tackling the crisis affecting several banks...
    "Even after facing a long recession, the Italian banking sector has proven to be sound and resilient. "The stock of NPLs (non-performing loans) is shrinking at an increasing pace, while the origination rate of new exposure is approaching pre-crisis level. "Those comprehensive interventions on specific banks and on the industry as a whole reduced and in some cases excluded major sources of risk. "Overall, after years of adjustments, the Italian banking industry is returning to positive, effective and promising levels of performance".
    The newsletter also cited recent industrial production data confirming that the recovery is taking hold and featured a focus on the government's spending review.