The Milan Stock Exchange slips and drops 2% to 25,950 points, in line with the other European lists.
Piazza Affari is weighed down by the strong current of sales on banks.
New crash for banks in the European Stock Exchanges
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The strong sell-off is fueled by investors' concerns about the stability of the financial system as Eurogroup President Paschal Donohoe says he is "confident about the resilience of our banking system".
The Stoxx 600 banking sector index dropped 3.2%.
Among the main credit institutions Commerzbank lost 6.6%, Deutsche Bank (-6.3%), Societe Generale (-5.8%), Banco de Sabadell (-4.8%), Bnp Paribas (-4 .1%), Banco Santander (-3.7%).
In Piazza Affari Mps is down by 5.6%, Banco Bpm and Bper (-5.3%), Unicredit (-5%) and Intesa (-4.1%).