MILAN Feb 3 Intesa Sanpaolo, Italy's biggest retail lender, is working on plans to create an internal "bad bank" by setting aside bad loans, a source close to the situation said on Monday.
"They are doing it," the source told Reuters, confirming a report in the Financial Times.
"I think it could be part of the new industrial plan" to be presented at the end of March, the source said speaking on condition of anonymity.
Intesa declined to comment. (Reporting by Cristina Carlevaro, writing by Silvia Aloisi, editing by Paola Arosio)