And speaking of Italy’s weakest links, the banks, the IMF said that “risks are tilted to the downside,” listing a raft of issues including the poor asset quality of Italy’s banks, financial market volatility and the impact of a global trade slowdown on exports.

“If downside risks were to materialize, regional and global spillovers could be significant given Italy’s systemic weight,” it said.

In an assessment that will hardly help Italian bank stocks, the IMF said that the country’s banks, which are saddled with some 360 billion euros of bad loans and whose share prices have fallen by more than 50 percent this year, are a particular threat to the economic outlook, the IMF said. “Unless asset quality and profitability problems are addressed in a timely manner, lingering problems of weaker banks can eventually weigh on the rest of the system,” it warned.

Source: IMF Warns Of “Global Contagion” From Italy’s Bank Crisis



Subscribe!

Every day we send our readers the latest news with Christian commentary right to their inbox. Bi-weekly we include Bible Q&A and Bible studies as they become available. We invite you to join us.




Study With Us!

Visit the Bible Study, Bible Question and Answer and Video section of our site.


Leave A Comment

You are invited to participate in our Christian Community by leaving a comment. We would love to read your point of view and inspiring messages. Please read our Community Guidelines before commenting and note all comments are moderated (Ephesians 4:29).