The Bank of Italy has ordered embattled domestic lender Banca Italease, in which groups including Goldman Sachs and Mediobanca are trying to buy stakes, to dismiss its board of directors and launch a €610m ($837m) capital increase.

The central bank, run by former Goldman Sachs banker Mario Draghi, estimated that Italease could have built up losses as high as €500m on derivatives sold to retail investors. Analysts believe the losses could hit €700m.