European banks ‘a threat to stability’

UNHEALTHY European banks are the biggest threat to global financial stability, and they need to find fresh capital, the International Monetary Fund has said.

“Many institutions — particularly weaker European banks — are caught in a maelstrom of interlinked pressures that are intensifying risks for the system as a whole,” the IMF said in its Global Financial Stability Report.

“Remaining structural weaknesses and vulnerabilities in the euro area still pose significant downside risks if not addressed comprehensively,” it said.