Many European Banks Would Collapse Without Regulators’ Help: Fitch

Only two things keep these banks alive: ‘a State willing to support them and a regulator that does not declare them insolvent.’
Dozens of Greek, Italian, Spanish and even German lenders have volumes of troubled assets higher or similar to that of Spain’s fallen lender Banco Popular. They, too, are at risk of insolvency. This stark observation came fromBridget Gandy, director of financial institutions for Fitch Ratings, who spoke at a conference in London on Thursday.
The troubled banks include:
Greece’s HB, Piraeus, NBG, Eurobank and Alpha; Italy’s Monte dei Pachi di Siena (which is in the process of being rescued with state funds), Carige (9th largest bank, now under ECB orders to raise capital or else), CreVal, and the two collapsed banks, Veneto and Vicenza (whose senior bondholders were bailed out last weekend); Germany’s Bremer Landesbank (which just cancel interest payments on its CoCo bonds) and shipping lender HSH Nordbank. Spain’s Liberbank and majority state-owned BMN and Bankia, which are completing a merger after private-sector institutions refused to buy BMN. Now, the problems on BMN’s balance sheet belong to Bankia, which already has its own set of issues, Gandy said.

This post was published at Wolf Street by Don Quijones ‘ Jul 1, 2017.