The Italian central bank has defended its role in the multi-billion euro fraud scandal that has engulfed Parmalat and accused Italian banks that dealt with the disgraced foods group of showing a "serious error of judgement".

Antonio Fazio, the governor of Banca d'Italia, speaking at a parliamentary hearing into the scandal, claimed that Italian banks were aware of uncertainties surrounding Parmalat as early as February 2003, according to Reuters.