Bank crisis in Italy may spark ‘doom loop’ for UK, warns Bank of England
A fresh banking crisis in Italy could spark a devastating “doom loop” that threatens UK financial stability, the Bank of England has warned.
Bank officials are concerned that problems affecting Italian lenders could spread across the Eurozone and eventually be transmitted to the UK economy through French and German banks, which have massive exposure to Italy.
Big French banks own tens of billions of Italian sovereign debt. BNP Paribas had €9.8bn (£8.7bn) at the end of 2017, BPCE had €8.5bn and Crédit Agricole €7.6bn. UK financial institutions own very little Italian debt but they have “much higher claims on countries with close links to Italy, including France and Germany.”
“Although direct UK...
Bank crisis in Italy may spark ‘doom loop’ for UK, warns Bank of England
DOOMed!
A fresh banking crisis in Italy could spark a devastating “doom loop” that threatens UK financial stability, the Bank of England has warned.
Bank officials are concerned that problems affecting Italian lenders could spread across the Eurozone and eventually be transmitted to the UK economy through French and German banks, which have massive exposure to Italy.
Big French banks own tens of billions of Italian sovereign debt. BNP Paribas had €9.8bn (£8.7bn) at the end of 2017, BPCE had €8.5bn and Crédit Agricole €7.6bn. UK financial institutions own very little Italian debt but they have “much higher claims on countries with close links to Italy, including France and Germany.”
“Although direct UK...
Bank crisis in Italy may spark ‘doom loop’ for UK, warns Bank of England
DOOMed!
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