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European €3trn bank deleveraging bites

Incoming regulatory requirements will dramatically increase European bank deleveraging in the coming years by as much as €3trn, prompting Europe’s combined funding gap to soar by 50% to $249bn, according to new findings by DTZ Research.
By James Wallace
February 13, 2012 | 1:43 P.M.

Deleveraging  Banks are grappling with the impact of the Basel III framework, the European Banking Authority’s revised stress-testing as well as the European Central Bank’s three-year long- term repo operation (LTRO), launched at the end of December.

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