Become a digitalPLUS subscriber. 99 for 4 weeks.

Topics

Consumer Confidence
Big bang, not big bucks, the key for euro zone bank lending

DUBLIN/FRANKFURT (Reuters) - If the European Central Bank really wants to kick-start the euro zone economy, it should ensure the bloc's banks are up to the task of lending. The International Monetary Fund has estimated that nearly three-quarters of euro zone banks need to significantly change their business models before they will be able to meet the demand for credit when the economy recovers. This week's stress test of Europe's largest banks gives the ECB an opportunity to overhaul the sector, closing struggling banks and ensuring the ones left standing can sell loans profitably. But expectations for a "big bang"-style restructuring of the banking sector are...

Loading