London, 16 October 2013 -- The outlook for Italy's banking system remains negative, unchanged since May 2009, says Moody's Investors Service in a new report published today. The outlook reflects Italy's persistently fragile economic environment, problem loans that continue to increase from already high levels and weak core profits. These drivers offset some positive developments over the past year, such as banks' further strengthening of their regulatory capital levels, improved access to funding and increased liquid assets.

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