Merler, Sylvia, (2016), “Bad banks and rude awakenings: Italian banks at a crossroads”, Bruegel publications, 26 January
Taking a step back, it is important to understand what could be behind the sudden change in market sentiment. Borrowing a literary expression, this is to some extent the chronicle of a death foretold. Italian banks have been very resilient to the first wave of financial crisis in 2008, due to the low exposure of Italian banks to US products and to the fact that there was no housing bubble that burst (contrary to what happened e.g. in Spain).
Relevant Posts
- Smith, Y. (2014) “Ilargi: 40% of Eurozone Banks Are In Bad Shape“, Naked Capitalism Blog, 23 October.
- Merler, S. (2014) “Vicious circle(s) 2.0 – while trying to sever the sovereign-banking link, we may be disregarding vulnerabilities from banks’ mutual interconnectedness“, Bruegel Institute, 20 November.