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The vice-president of Germany’s central bank has a warning for lenders as insolvencies rise
Germany’s major banks need to increase their provisions for non-performing loans, as corporate insolvencies and credit risks mount, according to Bundesbank Vice-President Claudia Buch. Europe’s largest economy has been dubbed the “sick man of Europe” by some economists, after entering a technical recession earlier this year while economic activity faces further downward pressure from a collapse in construction. Lawmakers in Berlin are meanwhile scrambling for solutions to a developing budget crisis that could threaten the future of the country’s coalition government. Like the rest of the euro zone, the ... (full story)