Although European shares have slightly recovered from a drop following the result of the Italian referendum before declining back again in less than twelve hours after the vote, shares of Italian banks are posting bigger losses on Italian Prime Minister Matteo Renzi’s defeat on the referendum.

Italian banks such as the Banca Monte deiPaschi di Siena faced threats of plunging shares after the Italian voting public chose to remain with their current government and refused to accept changes in their constitution. This led the Italian government to face a crisis in spite of the efforts from investors to recapitalize banks in the country. Italy’s largest bank Unicredit also dropped down by almost 5.5%.