Fragile European Banks Bracing for Covid-Era Distressed Loans
- Lenders are still digging out of the euro-area debt crisis
- Bailouts could be back on the agenda, some analysts warn
This article is for subscribers only.
As 2020 dawned, bankers throughout Europe were still digging out of the last crisis, with weak lenders in Greece and Italy peddling soured loans and policy makers channeling public funds to frail institutions.
Now, as Covid-19 wreaks havoc, a gathering tsunami of distressed credit risks wrecking a decade of efforts aimed at bolstering the fragile financial industry. The fallout could also undermine the extraordinary efforts by governments and central banks to prevent an economic meltdown.