The shocking state of the Italian banking system has once again made headlines in the financial press. Italy has €360bn of gross non-performing loans (NPLs), equivalent to almost a fifth of GDP, and Street estimates put €196bn of these having collateral backing of less than 60%. While some provisioning has been made, eight years on from the credit crisis, it is simply appalling that a problem of this magnitude has been left to fester and overhang the Italian financial system for so long. Renzi introduced a new bankruptcy law last year which will bring down the time required to foreclose loans and ought to make it easier for investors to buy NPLs from banks. The Government has launched a bank rescue fund, Atlas, earlier in the year to accelerate this process.