Italy's once-tottering financial system isn't nearly as scary as it was, reports the Wall Street Journal. About €300 billion in bad and doubtful loans is still big figure - and almost one-third of Europe's total - but a banking clean-up through sales, higher provisions and capital injections is well under way. Fears that Italy's banks could be the source of a wider financial panic are finally fading. Accelerating economic growth this year and pressure from European supervisors have been carrot and stick for the sector, while government-led bank rescues in the summer—after a long wait—dialed down the risk of systemic collapse.