Eyes on Italy's banks with referendum on deck

|By:, SA News Editor

Italy will hold a constitutional referendum on Sunday that has become a de facto vote on whether the Prime Minister Matteo Renzi should keep his job.

What's it about? The reforms would remove power from the Senate to enable laws to be passed quickly and efficiently.

The latest polls showing the overhauls are likely to be rejected has investors worried about a "financial meltdown" as Italy's shaky banking sector would have a tough time raising much-needed capital.

ETFs: EWI, HEWI, DBIT

Related bank tickers: OTCPK:UNCFF, OTCPK:IITSF, OTCPK:IITOF, OTC:MDIBF, OTCPK:ISNPY, OTCPK:BPESY, OTC:UNCFY, OTCPK:MDIBY, OTCPK:BPESF