Germany's Merkel: confident of good solution for Italy banks

BERLIN – German Chancellor Angela Merkel says she’s confident of a good solution to Italian banks’ problems and doesn’t see a European bank crisis brewing.

Worries over the financial health of Italy’s banks have grown more acute since Britain voted to leave the European Union.

Italian Premier Matteo Renzi is looking for a way to rescue them from a pile of bad loans that aren’t being repaid. At the same time, officials from the 19-nation eurozone say new rules governing the rescue of imperiled banks that seek to protect taxpayers won’t be fudged.

Merkel pointed to “intensive talks” on the issue. She added Tuesday in Berlin: “I am very much convinced that these questions … can be resolved well, and overall I see no crisis-like development.”