Why Europe's Banks Don't Have Enough Capital

Why Europe's Banks Don't Have Enough Capital

12 April 2016, 00:33
Francis Dogbe
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Europe's economic malaise has a lot to do with its crippled banking system. Making that system more fragile seems like the wrong way to address the issue. With the European Central Bank taking interest rates deeper into negative territory and the euro-area economy languishing, investors have become more concerned about the future profitability -- and perhaps the viability -- of the region's banks. As a result, regulators are coming under pressure to ease capital requirements, on the grounds that this will help banks start making money and lending again. Such logic perpetuates a ... READ MORE
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