Italy's Target2 debt falls to 519.59 billion euros in October

MILAN (Reuters) - Italy’s liabilities towards other euro zone central banks, the so-called Target 2 position, fell to 519.59 billion euros (469.1 billion pounds) in October from 546.33 billion euros the previous month, Bank of Italy data showed on Friday.

The European Central Bank’s funding to Italian banks was roughly stable at 367.39 billion euros last month from 367.45 billion euros in September.

A country’s Target 2 position is monitored as a sign of financial stress and imbalances within the euro zone. Target 2 debt could rise, for example, due to capital outflows. It also reflects increased reliance of domestic banks on ECB’s funding.

The Bank of Italy started publishing its Target 2 debt position in September 1997.

Reporting by Sara Rossi, editing by Agnieszka Flak