The Plight Of Europe's Banking Sector, Its €650 Billion State Guarantee, And The "Urgent Need" To Recapitalize A month ago we quantified that just the overt European bank undercapitalization (excluding spillover effects from counterparty liability and derivative exposure) resulting from non-performing loans, is a staggering €500 billion. These NPLs "reduce the capacity of banks to lend, hindering the monetary policy transmission mechanism. Bad debts consume capital and make banks more risk averse ...
June 15, 2013 - Zero Hedge