If you think Britain’s banks are in bad shape, spare a thought for the Italians, where the country’s battered lenders are rapidly crumbling under an astonishing €360bn (£300bn) of bad loans.

While most people fret about the fallout from Brexit, some experts believe Italy’s banking crisis represents a far greater threat to the eurozone.

The problem is that Italy’s financial system needs a substantial bailout, but EU “bail-in” laws prevent prime minister Matteo Renzi from undertaking one without first wiping out the banks’ shareholders and bondholders.

Renzi, however, is desperate to avoid this because it could cost him his political career. In Italy, tens of thousands of households and individuals have bought such bonds, and forcing the problems of the banks on the man on the street would make it impossible for Renzi to be re-elected.