Sentences with phrase «weak banks»

They wanted an opaque way of encouraging the purchase of weak banks by stronger banks.

In addition to highlighting the risk of eroding protection for European bank bondholders, we believe the action taken in Cyprus will reignite concerns about the stability of deposits in weaker banking systems, especially considering that deposit insurance is still provided locally.

Euro zone officials have long debated setting up a deposit insurance scheme but Germany opposes this, fearing that German taxpayers would be asked to foot the bill for bailing out weaker banks on the currency bloc's periphery.

Europe hasn't been [able] to put the firewalls and most importantly hasn't been able to break the link between weak banks and weak sovereigns.»

While Banco Popular may be a unique case, this will leave creditors and other weak banks feeling anxious.

But there are also fears that the new technology could undermine the country's already weak banking system and exacerbate capital flight.

The unexpected raid on depositors was, he continued, «a great way to encourage the mass migration of savings from weak banks in the Euro area to stronger banks somewhere else.»

They clearly say shoring up weak banks often merely prolongs the inevitable and increases the ultimate scale of losses.

A large portion of the OECD is struggling with weak economies, rabid unemployment — particularly among youth — and weak banking systems have created financially fragile governments.

In addition to that, the euro area has (a) worsening problems of political instability (Italy without government, unfolding corruption scandals in recession - hit Spain and France), (b) dysfunctional banking systems (weak banks and their impaired lending activities despite ample liquidity supplied by the ECB) and (c) lingering uncertainties about the financial system's credibility (problems with depositor and investor protection).

It is, therefore, a good bet that the triad of fiscal austerity, short - term growth - stifling structural reforms and seemingly intractable problems of a weak banking system will soon lead to the downward revision of the ECB's long - standing growth forecast for the euro area.

1) Lower economic strength in light of the diminished medium - term growth outlook, constrained by foreign currency shortages, high inflation, lower public sector spending and a weak banking system.

In addition, economic activity will be constrained by lower levels of government spending than before and a weak banking system.

There must be a recapitalisation of the weak banks, with preferably a direct link between the EFSF / ESM and the banks, in order to break the negative feedback loop that we have between banks and sovereigns.»

Wars, government incompetence, political interference, weak banking system, and a weakening economy brought everything down in 2008.