European banks' debt-at-risk continues to rise. This was revealed by a study by PricewaterhouseCoopers relaunched today by the Wall Street Journal. According to the financial services company, in the first six months of 2012 the credit institutions of the Old Continent have carried out no-core loans for "the record figure of 27 billion euros" and "could reach 50 billion for the entire year , compared to 36 billion euros in 2011”.
European banks "are making progress in easing their problems with risky lending, but a cloud of uncertainty over the eurozone is slowing deleveraging in the sector."
In addition, the study estimates that the share of non-interest bearing loans grew more than 10% last year, doubling from the end of 2008. “With private investors unwilling to provide that capital and with governments unable to liquidity injections without increasing the debt too much, the only alternative for the banks is to sell assets and reduce the amount of their business”.
The American newspaper points out that "for Greece, which remains in doubt about its permanence in the eurozone, 20% of loans are at risk", and underlines that a third of the loans are concentrated in the banks of Spain, Italy and Ireland, “Countries that could find it difficult to stay in the euro if a breakup begins”.
Read the article of Wall Street Journal
