IMF homes on the eurozone's weakest link: Italy
by Phillip Inman from on (#1ABPZ)
Bad loans in Italy account for more than a third of the a900bn total of non-performing loans on the books of eurozone banks
When financial regulators say the European banking system is safe from another major crash they are talking about the funds banks can use to offset their losses.
The 31 biggest banks hold an aggregate a1tn (700bn) of shareholder funds, and account for about 75% of the European banking system by assets. Across all banks, it's fair to say the total equity reaches a1.35tn.
Related: IMF warns of fresh financial crisis
Continue reading...