Europe crisis ups banks' risk by 300 bln euros -IMF |
| Reuters - Sep 21, 2011 |
Europe's debt crisis has increased the risk exposure of banks in the region by 300 billion euros, and they need to recapitalize to ensure they can weather potential losses, the International Monetary Fund said on Wednesday.
In its Global Financial Stability Report, the IMF said it sought to "approximate the increase in sovereign credit risk experienced by banks over the past two years."
The report did not measure bank capital needs, which the IMF said would have to be determined by fully fledged stress tests to identify balance sheet assets, income or losses.
It was unclear to what extent European banks have already recognized the increase in their risk exposure, said Jose Vinals, director of the IMF's Monetary and Capital Markets Department. "There is not enough transparency in the way banks treat sovereign risk," he told a news conference.
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- Posted: 2011-09-21 12:05:11
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