Italy’s banking sector is looking increasingly vulnerable and analysts are starting to fear that the euro zone’s third largest economy could “go under,” warning of the potential for bank runs, credit rating downgrades and the threat to the wider European banking system.

We have reports from readers in Italy that ATM machines are being emptied. A run on banks is beginning in Italy.

https://www.armstrongeconomics.com/world-news/sovereign-debt-crisis/banking-panic-in-italy/

Bank runs, bailouts and downgrades? What Italy’s future could look like

Italy’s banking sector is looking increasingly vulnerable and analysts are starting to fear that the euro zone’s third largest economy could “go under,” warning of the potential for bank runs, credit rating downgrades and the threat to the wider European banking system.
“Italy could be a bigger threat to euro zone stability than Brexit,” Andrew Edwards, chief executive of London spread better ETX Capital said in a note on Tuesday. “The nation has a creaking banking sector that could undo all the European Central Bank‘s efforts to save the euro if not handled correctly.”
“Unlike other countries, Italy did not carry out a full spring clean of its banks post-Lehmans and there is trouble brewing with the country’s banks holding 360 billion euros ($400 billion) in non-performing loans (NPLs) – a third of all the euro zone’s bad debt and about a fifth of all consumer loans in Italy,” Edwards noted, highlighting the extent of Italy’s banking vulnerabilities.

http://www.cnbc.com/2016/07/06/bank-runs-bailouts-and-downgrades-what-italys-future-could-look-like.html