Italy inspects pricing of property

Italy is hiring consultants to help investigate the pricing of property used as loan collateral by banks.

The Bank of Italy will hire up to five consultants, reports Reuters, to ensure that the value of collateral for lenders is accurate.

"The issue of the correct valuation of collateral is still open and is a very sensitive issue," a senior banker told the news agency on condition of anonymity.

"Banks have already written down the value of collateral but they are wondering: is this enough? At the same time, excessive prudence could have catastrophic consequences, as it would further depress the real estate market."