A logo of Monte dei Paschi di Siena bank is seen on the ground in Siena, Italy, November 5, 2014. REUTERS/Giampiero Sposito/File Photo

MILAN (Reuters) - Shares in Monte dei Paschi di Siena BMPS.MI fell 5.3 percent on Monday and were suspended from trading as Italian banking stocks came under renewed pressure ahead of a Dec. 4 constitutional referendum that could unseat the government.

Markets worry political instability in Italy would make it hard for Monte dei Paschi to complete a 5 billion euro ($5.3 billion) recapitalisation, needed to stave off the risk of being wound down, with a knock-on effect on other lenders.

Monte dei Paschi CEO Marco Morelli is expected to update the board on the plan’s progress at a meeting due to start at around midday on Monday. ($1 = 0.9406 euros)