Italian banks' resistance to serving as fodder for the European consolidation machine is producing some interesting, if not innovative, ways of raising debt capital.

The 'petrified forest', as Italy's banking sector was once famously described, was supposed to have been chopped down by marauding foreign banks. Instead, the domestic institutions have survived in surprisingly large numbers and are now looking to clear out the dead wood themselves, most notably by offering huge sales of non-performing assets. The momentum created by their efforts is leading to the adventurous exploration of other areas of the market.