European Banks Remain Under Pressure From Weak Growth

European banks remain under pressure from weak growth and high debt repayments. They need to strengthen their balance sheets by reducing assets and increasing their capital, a process known as deleveraging, to regain investor confidence, the IMF said in its Global Financial Stability Report issued on the 18 April 2012.

The FT suggested that a drastic contraction of European bank balance sheets during the following 18 months could jeopardise financial stability and economic growth in Europe and beyond, according to its reports of the International Monetary Fund report.

IMF: Global Financial Stability Report, April 2012 http://www.imf.org/external/pubs/ft/gfsr/2012/01/index.htm

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