Italy's Renzi attacks Bank of Italy governor as re-appointment nears

ROME (Reuters) - The Bank of Italy has been a "weak point" of the system under the governorship of Ignazio Visco, former prime minister Matteo Renzi said Thursday, putting pressure on the government not to renew his mandate.

Visco is a board member of the European Central Bank and is considered a close ally of ECB President Mario Draghi. His mandate expires at the end of the month and the government is widely expected to recommend he serves another six-year term.

Renzi, who heads the ruling Democratic Party (PD), said he would respect whatever decision is taken by the centre-left government, adding that if Visco was reconfirmed, he hoped he would do a better job next time round.

"The name that emerges today will have all our respect from an institutional viewpoint. However, at the end of the day, the Bank of Italy has been a weak point in the system," Renzi told

Radio Capital.

Prime Minister Paolo Gentiloni is expected to send a letter to the Bank of Italy later on Thursday with the name of his preferred candidate to become the next governor. The head of state has the final say on the appointment.

"If they consider it is worth the effort to reconfirm Ignazio Visco I hope the next six years will be better. I can't see how they could be worse," Renzi said.

Visco's leadership has come under fire following the collapse of 10 Italian banks over the past two years, wiping out the savings of thousands of people who held shares and bonds in the lenders.

Critics say the central bank's supervisory division failed in its duties. Visco has defended its work, saying the banking crisis was sparked by a prolonged recession which punched holes in the euro zone's third largest economy.

(Reporting by Crispian Balmer and Giuseppe Fonte; Editing by Toby Chopra)