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Further write-downs are expected this and and the coming year (Photo: pimousse3000)

ECB warns of second wave of bank write-downs

The European Central Bank has warned that euro area banks face a further €195 billion in write-downs over this and the coming year, and that contagion from the bloc's sovereign-debt crisis poses a major risk to the financial sector.

In its twice-yearly Financial Stability Review, published on Monday (31 May), the Frankfurt-based institution estimates that banks should anticipate further losses this year of around €90 billion, plus a further €105 billion in 2011. This comes on top of th...

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Further write-downs are expected this and and the coming year (Photo: pimousse3000)

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