The Spanish government is on “good track” to address the banking system’s problems, UniCredit SpA (UCG) Chief Executive Officer Federico Ghizzoni said in an interview with Bloomberg Television today.

“The Spanish government is taking a very pragmatic stance to the problem of Spanish banks,” the CEO said. “I don’t think the government has understimated the situation.”

Italy’s banks are “quite strong and sound from a capital point of view,” Ghizzoni said.

The Italian and Spanish banking industries aren’t comparable, he said.

To contact the reporters on this story: Sonia Sirletti in Milan at ssirletti@bloomberg.net; Flavia Rotondi in Rome at rotondi@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net