Is ‘overbanked’ going to be a common household word?
March 26, 2013 by admin
Go no further than the following two charts to understand why markets freaked out over Dijsselbloem’s comments. Europe is way overbanked and vulnerable to financial sector shocks.
Even in the so-called “safe haven” Switzerland the banking system is outsized relative to the country’s GDP. Compare the relative size of UBS, for example, to the largest bank in the U.S., JP Morgan. Nuff said.