FRANKFURT (Reuters) – A group of 25 banks have failed European health checks, while up to 10 of those continue to have a capital shortfall, two people familiar with the matter said on Friday, providing a snapshot of the health of the region’s lenders.
The health checks, led by the European Central Bank, found that banks in countries including Greece, Cyprus, Slovenia and Portugal had fallen short of a minimum capital benchmark at the end of last year and that up to 10 remained in difficulty now, the sources said.
DUBLIN/FRANKFURT, Oct 23 (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.
FRANKFURT, Oct 20 (Reuters) – Germany risks coming
dangerously close to recession, the central bank said on Monday
in a forecast that predicted little or no economic growth in the
second half of the year.
In the Bundesbank’s gloomy assessment, the euro zone’s
biggest economy will stay weak, compounding the problems of the
18-country bloc, where the economy is already slowing to a
ATHENS/FRANKFURT (Reuters) – The European Central Bank will loosen its rules on collateral quality to give Greek banks access to more funding, a Greek central bank official said, to help keep them steady following a plunge in Greek stocks and bonds.
Another person familiar with the matter said the ECB was set to discuss loosening collateral rules for Greek banks at a meeting of policymakers on Thursday.
LUXEMBOURG, Oct 14 (Reuters) – Europe’s top court on Tuesday
heard a challenge to the European Central Bank’s landmark
bond-buying scheme to contain the euro zone crisis in a case
underscoring deep concerns in Germany over ECB clout.
The case comes more than two years after the ECB backed a
scheme to buy government bonds, called Outright Monetary
Transactions (OMT). Although the plan has since been all-but
moth-balled, the ruling, due in the middle of next year, could
have wide significance.
LUXEMBOURG (Reuters) – France faced intensifying pressure from euro zone peers on Monday to tighten spending next year amid a growing rift over its plans to flout European budget rules.
The dispute with France over its planned 2015 budget is a test of new euro zone powers to police public finances and is complicated by a wider debate about how to use government money to help the stagnating European economy.
LUXEMBOURG (Reuters) – France faced renewed pressure from euro zone peers on Monday to tighten spending next year, amid a growing rift over its plans to flout European budget rules.
The dispute with France, the euro zone’s second-largest economy, over its planned budget, is an added problem for the bloc, which is hamstrung by political division while its economy is slowing.
FRANKFURT (Reuters) – Grappling with an ailing euro zone economy and stagnant prices, the European Central Bank is hoping that help will come from something it cannot control: the value of the euro.
As Washington prepares to stopper the supply of cheap money that has been helping it revive the United States, the euro has started to fall steeply against the dollar.
FRANKFURT, Sept 25 (Reuters) – It has been billed as a make
or break moment for Europe’s banks: the publication of rigorous
industry-wide health checks next month after three previous
tests failed to spot problem lenders.
Yet – seven years after huge bank losses drove some
countries to the brink of bankruptcy – investors braced for a
grim reckoning this time will be disappointed. The European
Central Bank, under pressure from Rome, Berlin and other
capitals seeking to protect their recovering patients, is
instead likely to temper its judgement.
FRANKFURT (Reuters) – European Central Bank plans to bolster lending to business were dealt another setback on Friday after banks decided to repay billions of euros of cheap ECB credit, sapping money available to lend to business.
The news came a day after the central bank’s fresh offer of up to 400 billion euros (314.33 billion pounds) of low-cost loans fell flat, casting doubt on its plans to shore up the euro zone’s faltering economy.