Jeremy Warner: Europe's banks still need plenty of medication
Outlook: Economic recovery is being hampered by lack of confidence in the eurozone banking system
Tuesday 16 June 2009
If we seem to be past the worse for the British and American banking systems, the same cannot be said for continental Europe, where according to the European Central Bank, eurozone banks are facing a further $283bn of additional losses this year.
As the ECB now itself acknowledges, economic recovery is being severely hampered by lack of confidence in the eurozone banking system. Britain and America has found that systematic stress testing of banks by the authorities have worked wonders in drawing a line under the crisis so that confidence can be restored. This has yet to happen in Europe on any kind of credible level.
The ECB cannot formally conduct such tests itself, since only nations can provide the bailouts these tests may make necessary, but it can co-ordinate them so that common standards are applied. This process must now begin as a matter of urgency.
- 1 Isis burns thousands of books and rare manuscripts from Mosul's libraries
- 2 Scarlett Johansson new band 'already hit with legal complaint' from another The Singles
- 3 Husband and wife die holding hands within hours of each other after 67 years of marriage
- 4 The remarkable archaeological underwater discovery that could open up a new chapter in the study of European and British prehistory
- 5 'Jihadi John': CAGE representative storms off Sky News after accusing Kay Burley of Islamaphobia
Liam Gallagher brands Kanye West 'utter s**t' during BRIT Awards performance
Isis burns thousands of books and rare manuscripts from Mosul's libraries
Husband and wife die holding hands within hours of each other after 67 years of marriage
Mohammed Emwazi: Family of man named as 'Jihadi John' described by neighbours as a 'normal Muslim family'
Mohammed Emwazi: Nine things we now know about man named as Isis militant 'Jihadi John'
Oscars 2015: Birdman beats Boyhood as Eddie Redmayne and Patricia Arquette win big - as it happened
New theory could prove how life began and disprove God
Half of Ukip voters say they are prejudiced against people of other races
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
Aqsa Mahmood branded a 'disgrace' by her parents after claims she recruited three UK girls flying to Middle East
This is what it's like to be dead, according to a guy who died for a bit
iJobs Money & Business
£17000 - £25000 per annum: Recruitment Genius: An opportunity to join this new...
£18000 - £21000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£36000 - £44000 per annum: Recruitment Genius: Encouraging more businesses to ...