Italian banks must tackle a $341 billion load of non-performing loans, the co-founder of a hedge fund with a base in Milan told CNBC on Tuesday.
"I think it will be a very rocky 2016 for some of the banks," Joseph Oughourlian, co–founder of Amber Capital, told CNBC TV at the Investors Choice Awards in London.
Shares in Italian banks tumbled earlier this year when the European Central Bank requested further information on their portfolios of bad debts.
Oughourlian forecast more volatility was to come and said that it might not be the most debt-burdened banks who were worst affected.
"The issues with Italian banks keeps us up at night," he told CNBC.
Stefano Prosperi, the CEO of Kairos Investment Management, was also pessimistic about Italy.
"Although Italy is the worst-performing market in Europe we don't think now is the right time to make a macro call and go long on Italy," he told CNBC at the Investors Choice Awards on Tuesday.