{"id":31305,"date":"2018-02-20T12:12:02","date_gmt":"2018-02-20T17:12:02","guid":{"rendered":"http:\/\/olduvai.ca\/?p=31305"},"modified":"2018-02-20T12:12:02","modified_gmt":"2018-02-20T17:12:02","slug":"bank-bail-in-risk-in-europe-seen-in-5-charts","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=31305","title":{"rendered":"Bank Bail-In Risk In Europe Seen In 5 Charts"},"content":{"rendered":"
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Bank Bail-In Risk In Europe Seen In 5 Charts<\/a><\/h3>\n<\/header>\n
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\u2013 Nearly \u20ac1\u00a0trillion in non-performing loans\u00a0poses risks to European banks\u2019<\/strong>
\n\u2013 Greece has highest non-performing loans as a share of total credit
\n\u2013 Italy has the biggest pile of bad debt in absolute terms<\/strong>
\n\u2013 Bad debt in Italy is still \u201ca major problem\u201d which has to be addressed \u2013 ECB<\/strong>
\n\u2013 Level of bad loans in Italy remains above that seen before the financial crisis
\n\u2013 Deposits in banks in Greece, Cyprus, Italy, Ireland, Czech Republic and Portugal most at risk\u00a0from bank bail-in<\/strong>
\n<\/strong><\/p>\n

\"\"<\/a><\/p>\n

As reported\u00a0by\u00a0Bloomberg<\/a>\u00a0this week in an important article entitled\u00a0\u2018Five Charts That Explain How European Banks Are Dealing With Their Bad-Loan Problem\u2019:<\/em><\/p>\n

For European banks, it\u2019s a headache that just won\u2019t go away: the 944 billion euros ($1.17 trillion) of non-performing loans that\u2019s weighing down their\u00a0balance sheets.<\/em><\/p>\n

Economists say the pile of past-due and delinquent debt makes it harder for\u00a0banks to lend more money, hurting their earnings. European authorities are\u00a0prodding lenders to sell or wind down non-performing credit, but they\u2019re split on how to tackle the issue, and some investors are\u00a0disappointed\u00a0by the pace of\u00a0progress.<\/em><\/p>\n

There are various ways of calculating soured loans. The European Central Bank advises that non-performing asset indicators should be interpreted with caution because the definition of impaired assets and loss provision differ between countries. The data used below refers to domestic banking groups and standalone banks only, and excludes foreign subsidiaries and controlled branches.<\/em><\/p>\n

\u00a0\u201cThe data for the Czech banking sector consist of the banks that represent only 6 percent of credit extended by the banks operating in the Czech Republic,\u201d the central bank said by email.<\/em><\/div>\n

Here are five charts (above and below) using the ECB data that help explain the non-performing loan issue and how banks are tackling it.<\/em><\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p><\/blockquote>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Bank Bail-In Risk In Europe Seen In 5 Charts \u2013 Nearly \u20ac1\u00a0trillion in non-performing loans\u00a0poses risks to European banks\u2019 \u2013 Greece has highest non-performing loans as a share of total credit \u2013 Italy has the biggest pile of bad debt in absolute terms \u2013 Bad debt in Italy is still \u201ca major problem\u201d which has […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[18754,83,195,281,284,8689,11511,690],"class_list":["post-31305","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-bail-in-risk","tag-bloomberg","tag-debt","tag-europe","tag-european-union","tag-goldcore-com","tag-mark-obyrne","tag-risk"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31305","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31305"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31305\/revisions"}],"predecessor-version":[{"id":31306,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31305\/revisions\/31306"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31305"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}