One of Italy’s largest banks is selling property in a desperate attempt to boost its balance sheet as its shares were suspended for the fourth time in three days.

UniCredit, Italy’s fourth largest bank, was required to make the announcement by regulators after a sharp fall in its stock.

The bank has been shaken by the credit crisis more than its Italian counterparts because it has greater exposure to international markets. Yesterday, Silvio Berlusconi, the Italian Prime Minister, joined its chief executive, Alessandro Profumo, in attempting to calm the market.

Mr Berlusconi said: “I am not pessimistic about the future because our financial situation is less fragile than that of the United States.”

UniCredit hope to increase its ratio of key core Tier 1 capital from 5.7 per cent to 6.2 per cent by moving part of its real estate portfolio into a closed-end fund.

It has also abandoned a project to create a commercial partnership with an international investment bank over performing assets.

The announcement initially pleased the market, and UniCredit shares opened six per cent up to €2.75 in Milan this morning.

But trading was suspended after they slipped back to €2.55.

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