Euro Zone Banks Have Enough Capital To Withstand Pandemic Hit – IMF
Euro zone banks have enough capital to withstand the impact of the COVID-19 pandemic and finance the economic recovery, even though they are highly exposed to sectors hard hit by the coronavirus, the International Monetary Fund said.
“While the pandemic will significantly deplete banks’ capital, their buffers are sufficiently large to withstand the likely impact of the crisis,” the IMF said in a study. “With the right policies, banks will be able to support the recovery with new lending.”
The IMF said that based on its January 2021 projections, banks in the 19 countries sharing the euro would stay broadly resilient to the deep recession in 2020 and the partial recovery this year.
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