A banking licence would boost the fund's firepower by allowing it access to cheap ECB funding.

Italian bond yields have erased a fall recorded in February and March thanks to cheap ECB funds.

Debt auctions from Italy and Spain were undeterred by Moody's sovereign rating downgrades, as cheap ECB loans supported demand.

Two rounds of cheap ECB financing has insulated money markets somewhat from volatile debt markets by ensuring banks are awash with cash.

Euro zone carry trade has limited shelf life Spanish and Italian banks are still loading up on sovereign bonds with cheap ECB loans.

This could help wean the banks off cheap ECB money and provide funds that can be lent to other businesses, helping economies to grow.