The committee, chaired by Economy Minister Giulio Tremonti, also said Italy is making progress towards its aim of balancing the budget in 2013 and state sector borrowing requirements are lower than forecast, according to recent data.

The Treasury said in a statement following the meeting that Italian bank capital had grown in 2011 through capital hikes and other measures, and would be further reinforced through Europe-wide measures.

Copyright Reuters, 2011