The 2016 EU-wide bank stress results released by the European Banking Authority on 29 July contained the expected bad news for Italian banks, with their high, €360 billion levels of nonperforming loans. The EBA this time did not say whether the 51 banks assessed passed or failed the stress test but the Banca Monte dei Paschi di Siena, one of the oldest banks in the world, was found to be the worst performer, with the test forecasting that 14 percent of its capital would be lost under adverse conditions. Banca Monte dei Paschi di Siena has now announced the sale of €9.2 billion of NPLs and a €5 billion injection of fresh capital.

Investors have not been deterred by the financial and economic backdrop, however, and the early summer saw a number of significant transactions in Milan, Italy’s financial centre, by major investors. BNP Paribas REIM Italy sold the 11,000-square-metre property at Corso di Porta Romana 8/10 in central Milan on behalf of the Fondo Immobiliare â€