ECB funding to Italian banks rises sharply in November

MILAN: Funding from the European Central Bank to Italian banks rose sharply to 153.2 billion euros in November from 111.3 billion euros at the end of October, data from the Bank of Italy showed on Wednesday.

Reliance on ECB funding for Italian lenders has risen sharply since the end of June, when total borrowing stood at 41.3 billion euros, mirroring growing funding strains caused by the euro zone sovereign debt crisis.

Wholesale funding markets are effectively shut and growing caution has crippled interbank lending, pushing diffident banks to park their funds with the ECB rather than lend to one another.

As Italy moved to the fore of the crisis in early July, investors' worries about its large debt pile have pushed up borrowing costs for the country and its lenders.