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Analysts: Banks will suffer from Italy downgrade

09-21-2011 10:45 BJT

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Global financial markets braced themselves for another day of turmoil on Tuesday after Italy's downgrade, but against the odds, major European benchmarks are actually up between 1 to 2 percent at the moment.

Analysts say though, this respite is only temporary and the latest downgrade is not good for the global economy and will add to mounting pressure on European banks. Already, France's BNP Paribas, Societe General and Credit Agricole have come under fierce market pressure for their heavy exposure to Greek and Italian debt.

Chief of the European Central Bank, Jean-Claude Trichet, has urged European banks to strengthen their balance sheets to improve their resistance to the crisis.

Chief of the European Central Bank, Jean-Claude Trichet, has urged European banks to
strengthen their balance sheets to improve their resistance to the crisis.

 

European Central Bank

 

Editor:Li Wanran |Source:

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