Fragile European banks bracing for covid-era distressed loans

Andrea Enria, chairman of the European Banking Authority, gestures while speaking during a Bloomberg Television interview in London on March 21, 2018. Foto: Bloomberg/Simon Dawson

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...

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