MILAN, May 24 (Reuters) - The European Commission has turned down a request to reduce the size of a one billion euro ($1.1 billion) private capital injection for two ailing regional banks needed to approve a state-backed rescue plan, four sources said on Wednesday.
A meeting on Wednesday between EU Commission officials, top management of Popolare di Vicenza and Veneto Banca, and Italian Treasury representatives turned out negatively, the sources said.
The two banks will attend a meeting at the Italian Treasury on Thursday to assess the situation, the sources added.
The banks and the Italian Treasury declined to comment.
Popolare di Vicenza and Veneto Banca, both based near Venice, are among the country's most troubled lenders and have requested state aid to help fill a capital shortfall of 6.4 billion euros. ($1 = 0.8931 euros) (Reporting by Andrea Mandala, Paola Arosio and Stefano Bernabei, writing by Stephen Jewkes, editing by Isla Binnie)