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“Italian and French banks revive ‘doom loop’ fears with bond buying
Exposure to own countries’ sovereign debt reawakens concern over faultline in Europe’s monetary union
Italian and French banks’ exposure to the sovereign debt of their own countries has hit record highs since the pandemic started, reviving fears about the sector’s links to increasingly indebted governments. Domestic government securities and loans held by eurozone banks rose more than €140bn to just over €2.1tn in the year to February, according to Financial Times calculations based on data from the European Central Bank. The exposure of Italian banks to domestic government debt hit a record €712bn last August, up more than 9 per cent from February and dipping only slightly since then. French banks had the sharpest post-pandemic rise in their exposure to their own government, which climbed to a record €431bn in September, a jump of more than 18 per cent since February.”
https://www.ft.com/content/fde7833a-8283-45b8-97ae-9104e1c974cd
Welcome to the Genuine DOOM series - when doom is mentioned in the article (ideally in the title), the best of DOOM is here...
Exposure to own countries’ sovereign debt reawakens concern over faultline in Europe’s monetary union
Italian and French banks’ exposure to the sovereign debt of their own countries has hit record highs since the pandemic started, reviving fears about the sector’s links to increasingly indebted governments. Domestic government securities and loans held by eurozone banks rose more than €140bn to just over €2.1tn in the year to February, according to Financial Times calculations based on data from the European Central Bank. The exposure of Italian banks to domestic government debt hit a record €712bn last August, up more than 9 per cent from February and dipping only slightly since then. French banks had the sharpest post-pandemic rise in their exposure to their own government, which climbed to a record €431bn in September, a jump of more than 18 per cent since February.”
https://www.ft.com/content/fde7833a-8283-45b8-97ae-9104e1c974cd
Welcome to the Genuine DOOM series - when doom is mentioned in the article (ideally in the title), the best of DOOM is here...
