25 European Banks Fail Stress Test
Banks in Europe are 25 billion euros, or $31.7 billion, short of the money they would need to survive a financial or economic crisis, the European Central Bank said on Sunday. That conclusion was a result of a yearlong audit of eurozone lenders that is potentially a turning point for the region’s battered economy.
The E.C.B. said that 25 banks in the eurozone showed shortfalls in their own money, or capital, after a review devised to uncover hidden problems and test their ability to withstand a sharp recession or other crisis. Of the 25, 12 have already raised enough capital to make up the shortfall, the central bank said. It did not immediately name the banks.
The highly anticipated assessment of European banks was intended to remove a cloud of mistrust that has impeded lending in countries like Italy and Greece and left the entire eurozone struggling to avoid lapsing back into recession. By exposing the relatively small number of sick banks — of the 130 under review — the central bank aims to make it easier for the healthier ones to raise money that they can lend to customers.
READ MORE »
http://dealbook.nytimes.com/2014/10/26/25-european-banks-fail-stress-test/?emc=edit_na_20141026
DO SOMETHING!
| 