IMF: Most pressing challenge in months ahead is funding of banks and sovereigns, especially in EZ
- European banks can’t raise all needed capital in markets; could opt to cut dividends, retain earnings
- Some banks will need to be restructured or resolved
- Some of capital needs will come from public sources
- Global banks face wall of debt over next two years; $3.6 trln maturing
- Bank stress tests an opportunity to enhance transparency, boost confidence in banks
- Sovereign funding challenges extend beyond euro zone; US and Japan sensitive to rise in funding costs
Most Popular