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DEBORAHBALL


MILAN--The European Central Bank has told Monte dei Paschi di Siena that its capital shortfall is EUR8.8 billion ($9.19 billion), significantly raising the amount the Italian government will have to deploy to rescue the troubled lender.
In a statement Monday evening, Monte dei Paschi said that the ECB said the bank's capital shortfall is far higher than the EUR5 billion expected when the government organized a rescue last week of Italy's No. 3 lender.
The bank said that the central bank warned of a "rapid deterioration" over the last month of its liquidity position. Monte dei Paschi has seen large outflows of deposits as it struggled in recent months to raise capital to meet an end-of-year deadline set by the ECB to shore up its balance sheet.
Write to Deborah Ball at [email protected]