"At the end of September bad debts accounted for 10.6
per cent of the total customer loans of the leading banking groups while total
non-performing loans amounted to 18.3 per cent."
Speech by the Governor of the Bank of Italy Ignazio Visco,
at 21st ASSIOM FOREX Congress Milan, 7
February 2015
Our comments:
If the economy is burdened with NPAs worth nearly $ 200 billion , there has to be a swift and quiet restructuring of the Italian financial system.Hiving off the assets to a new institution may release banks, but systemic fragility remains. With such fragile systems, Europe must hold together ; an exit of Greece would be damaging and deleterious, if not catastrophic.
Europe is not just Germany.
Without any risk or responsibility.
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