Banca Monte dei Paschi di Siena has on the whole a "solid" capital situation and its troubles will not affect the Italian banking system as a whole, Italy's financial stability committee said after a meeting on Tuesday.

The committee is made up of representatives of the Bank of Italy, the Finance Ministry and regulators. It deals with cases potentially affecting the country's financial stability.

"The institution has overall a solid capital situation and the tensions that it has faced will not produce effects for the banking system as a whole," the committee said in a statement.

(Reporting by Steve Scherer, writing by Catherine Hornby)