Europe's bank deleveraging: more to go


Europe's bank deleveraging: more to go

There have been warnings this week from the IMF that Italian and Spanish banks are inadequately capitalised and need to address their asset quality.

Economic Analysis

17 July 2013

RBS Head of European Macro Credit Research, Alberto Gallo talks about Europe's banking system, deleveraging and the banks which are still weak.

European banks have delevered by €2.4tn over the past year, yet this is less than half of what is needed. Although much focus has been on Spanish banks, Italian banks are smaller compared to the size of the economy and therefore Italy has been less concerned in dealing with them. With the ECB asset quality review approaching and the introduction of bank stress tests next year, mid-sized banks in Italy and Spain will need to increase their provisions and some may have to impose further haircuts on shareholders and bondholders.

Interviews from the Financial Times and CNBC Europe:

Tagged

Latest news

Royal Bank of Scotland hosts ‘Easy Wins Live’ event

The event explored today’s ‘always on’ world and the pressure Scots face as they struggle to balance life inside and outside of work.

To win the fight against fraud and scams, it is vital to educate young people.

Primary school children in Currie, Edinburgh put on their detective hats last week to learn more about fraud and scams thanks to the Royal Bank of Scotland MoneySense programme. Les Matheson, CEO of Personal Banking, tells us why it’s so important to financially educate young people.

New NatWest debit cards now accessible for all customers

New card features are being rolled out from today with all cards having a notch and raised dots.

Set Tab for lightbox