EU banks threaten global financial stability: IMF

Washington: Unhealthy European banks are the biggest threat to global financial stability, and they need to find fresh capital, the International Monetary Fund said today.

"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.

With the financial crisis, "banks have sought to raise both the quantity and quality of capital, but progress has been uneven, with European banks generally lagging US banks," the Washington-based institution said.

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

Source: Financial Express