IDEAS home Printed from https://ideas.repec.org/a/bcr/ensayo/v1y2011i61-62p141-188.html
   My bibliography  Save this article

The Euro Zone Debt Crisis and the Situation of the European Banks

Author

Listed:
  • José Manuel Duarte Inchausti

    () (Central Bank of Argentina)

Abstract

The sovereign debt crisis in Europe has deepened so far in 2011 and even more so since mid year. The reason behind this continuous deterioration is a combination of vulnerabilities in macroeconomic fundamentals (including some questionings about debt sustainability in Greece and other countries), misgivings about the effectiveness of the policy responses up to date and also the possibility of a spillover of the negative effects to other sectors and countries. The situation of the European banks is especially relevant due to their exposure to the debts of the economies in distress and to their dependence on wholesale funding. Though the analysis of the banking institutions reveals that their condition is highly heterogeneous, the current interconnection among the banks themselves and with the financial markets in general leads to higher perceived risks for the financial stability in Europe, with a potential impact at global level.

Suggested Citation

  • José Manuel Duarte Inchausti, 2011. "The Euro Zone Debt Crisis and the Situation of the European Banks," Ensayos Económicos, Central Bank of Argentina, Economic Research Department, vol. 1(61-62), pages 141-188, January -.
  • Handle: RePEc:bcr:ensayo:v:1:y:2011:i:61-62:p:141-188
    as

    Download full text from publisher

    File URL: http://www.bcra.gov.ar/pdfs/investigaciones/61_62_Duarte.pdf
    File Function: Spanish version (versión en Español)
    Download Restriction: no

    References listed on IDEAS

    as
    1. Jorge Carrera & Federico Grillo, 2010. "A Second Stage of the Crisis Characterized by Uncertainty," Ensayos Económicos, Central Bank of Argentina, Economic Research Department, vol. 1(57-58), pages 189-227, January -.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    banks; Europe; financial crisis; sovereign risk;

    JEL classification:

    • F01 - International Economics - - General - - - Global Outlook
    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcr:ensayo:v:1:y:2011:i:61-62:p:141-188. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Federico Grillo). General contact details of provider: http://edirc.repec.org/data/bcraaar.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.