Italian bank shares recovered some lost ground on Wednesday, after the government backtracked in part on its decision to impose a windfall tax. Citing financial stability concerns, Italy’s finance ministry said it would cap its tax on net interest income at 0.1% of risk-weighted assets. According to Andrea Lisi, an analyst at Equita, the hit to the sector drops to about €2 billion, from a previous estimate between €4.5 billion and €5 billion. FinecoBank FBK, +5.36% shares rose 4% and UniCredit UCG, +4.06% shares added 2%.
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