Monday, February 9, 2015

Italian Banks :A probable reason why Greece cannot leave?

"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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