IMF Urges More Forceful Action to Repair EU Bank System
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The European Union needs to take “more forceful action” to shore up its damaged financial sector, including targeted asset-quality reviews to make sure banks aren’t hiding further problems, International Monetary Fund staff said in a report today.
From French banks with big cross-border exposures to vulnerable German savings banks, Europe’s banking industry faces risks that mean it should press ahead with efforts to build a banking union, the Washington-based IMF said in its first assessment of financial regulation across the 27-nation bloc. The report said “pockets of weak banks” continue to threaten hard-won progress to restore financial stability.