Are Italian Banks the Next Non-Brexit Related Risk Event?

The video discusses the economic risks posed by Italy's systemic importance to Europe, highlighting the potential contagion effects on other European countries. It examines the challenges and solutions in the banking sector, including the use of Article 32 for state aid and the limitations imposed by the BRRD. The video also analyzes market concerns about profitability versus solvency, noting that systemic concerns in Europe are lower than in the past, but share price volatility remains a concern.

What does the current market sentiment indicate about the banking sector's profitability and solvency?

In what ways has the situation in Italy affected the share price volatility of major banks?