According to Financial Times, citing officials and senior bankers, up to eight Italian banks could be in trouble if voters choose "no" in the referendum.
If polls prove to be correct and Renzi loses the referendum, analysts argue that he would be forced to form a new government, but an early election would be unlikely.
Investors may not be interested in participating anymore if you have all this political instability in Italy off the back of this referendum.
That government won't be able to do anything but electoral reform, so Italy won't get the structural reforms that it needs.
Meanwhile, the Italian foreign affairs minister Paolo Gentiloni, have downplayed the impact the referendum result might have on banks and on Europe.
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