LONDON—Banks in Italy and other ailing European countries are encountering challenges securing affordable funding, but the troubles haven’t caused severe problems.

Fearful about Europe’s crisis spinning out of control, an increasing number of investors and banks have been yanking funds from some euro-zone lenders, according to bank executives and industry analysts. Other traditional providers of bank liquidity are only extending loans at higher prices or over shorter time spans than usual

Read the full story at the Wall Street Journal