As 2011 draws to a close, everyone's wondering if the eurozone will be able to make it through 2012 in one piece.
Downside risks menace from two sides.
On one hand, banks have to raise their ratios of core assets to liabilities in order to meet new banking regulations set forward by the European Banking Authority. That threatens to tighten credit and lending even further.
On the other, the cost of funding sovereign debt—the yield on sovereign bonds—has been elevated all year, despite some easing recently.
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