BAGNAIA, Florence (Reuters) - The head of Italy's Monte Paschi said on Friday the European Commission was likely to indicate a 12 month limit for the bank to complete a 2.5 billion euro ($3.4 billion) capital increase and that he believed the deadline was binding.

"The European Commission determines the maximum feasibility limits, the effective timing is decided by the markets," Monte Paschi Chief Executive Fabrizio Viola told reporters.

"I think the Commission will indicate a limit of 12 months and I think it will be binding," he said. ($1 = 0.7402 euros)

(Corrects alert and story to show CEO believes the timetable will be binding, fix garbled currency conversion)

(Reporting by Silvia Ognibene; editing by Francesca Landini and Anthony Barker)

The head of Italy's Monte Paschi said on Friday the European Commission was likely to indicate a 12 month limit for the bank to complete a 2.5 billion euro ($3.4 billion) capital increase and that he believed the deadline was binding.

"The European Commission determines the maximum feasibility limits, the effective timing is decided by the markets," Monte Paschi Chief Executive Fabrizio Viola told reporters.

"I think the Commission will indicate a limit of 12 months and I think it will be binding," he said. ($1 = 0.7402 euros)

(Corrects alert and story to show CEO believes the timetable will be binding, fix garbled currency conversion)

(Reporting by Silvia Ognibene; editing by Francesca Landini and Anthony Barker)