New Global Banking Crisis Risk
Banking & Financial Crisis Risk Rising
European Banks at the Epicenter of Potential New Financial Crisis
European banks more than others are already showing signs of stress in the face of not only China, collapsing oil, but now, unintended consequences of the increasing number of central banks implementing Negative Interest Rate Policy, or NIRP.
From CNBC European banks near 'terrifying' crisis
With European banks sitting at multiyear lows, one widely followed market watcher said some of the biggest ones could go bankrupt...
Former hedge fund manager and Goldman Sachs alumnus Raoul Pal said his scenario is one most investors aren't looking at right now.
Pal said the banking issues have the potential to overtake risks associated with China's growth slowdown and cheap oil.
"So many of these [bank stocks] are falling so sharply. I think people haven't even caught up with what is going on... "I look at the big long-term share charts of them, and I think this looks very terrifying indeed. I have not seen anything like this for a long time."
For Pal, negative interest rates are the chief reason why the bank stocks are in trouble. (Full video here
Also from CNBC: Here’s what is rocking European banks ahead of earnings
Italy: Bad loans Italian banks faced intense market pressure in January due to concerns about their still very high levels of bad debts. These fears were ignited when the European Central Bank requested further details on nonperforming loan portfolios..
Germany: Record loss for Deutsche Deutsche Bank, Germany's largest bank, reported Thursday that it had a record loss for 2015...
UK: China exposure Outside of Asia, British banks are among the most exposed in the industry to Hong Kong and mainland China. This increases their vulnerability to the slowdown in the world's second-biggest economy and the disruption in its equity market. Full story here