-
Europe Fears Banks Lack Cash Cushion to Cover Bad Loans
As Europe slogs through its latest round of bank stress tests, a growing number of analysts have already reached their own conclusion: Eurozone banks need additional cash. To buttress their case, some analysts have dusted off an obscure American bank metric that highlights the extent to which Europe’s increasing number of nonperforming loans is threatening to overwhelm existing bank cushions. The measure, called the Texas ratio, was developed by an analyst who covered troubled United States banks during the late 1980s and early 1990s. During that period, numerous Texas-based financial institutions collapsed under ... (full story)
- Comments
- Subscribe
- Comment #1
- Quote
- Aug 22, 2014 9:30am Aug 22, 2014 9:30am
- Bankerssuck
- | Membership Revoked | Joined May 2014 | 534 Comments
- Comment #2
- Quote
- Aug 22, 2014 9:40am Aug 22, 2014 9:40am
- seaman2
- | Joined Feb 2013 | Status: Member | 629 Comments
- Comment #3
- Quote
- Aug 22, 2014 9:54am Aug 22, 2014 9:54am
- NewtonsCash
- Joined Mar 2014 | Status: Member | 2586 Comments
- Comment #4
- Quote
- Aug 22, 2014 10:10pm Aug 22, 2014 10:10pm
- seaman2
- | Joined Feb 2013 | Status: Member | 629 Comments