Eurozone Bank Loss Estimates
In this piece, we revisit the issue of bank losses we expect in the eurozone. We use the estimates provided by the European Central Bank (ECB) in their June 2009 Financial Stability report as a starting point for our calculations given the similar economic outlook. We then add expected losses incurred abroad from foreign-registered eurozone banks.
The different calculations show that the amount of stress in the eurozone and the U.S. banking system is comparable, although stemming from different sources. Whereas the U.S. banking system is mostly exposed to the domestic economy, a significant share of eurozone losses stems from abroad.
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One Response to “Eurozone Bank Loss Estimates”
Sona • October 6th, 2009 at 12:20 pm
The link does not work?
