LONDON (ShareCast) - Banks in the 16-country eurozone could face another $283bn in write-downs by the end of next year, the European Central Bank has warned.
The ECB estimated in a report published yesterday that write-downs in the period
from 2007 through to 2010 could amount to around $649bn.
In 2008, eurozone banks were forced to write-off $375bn in bad assets.
"There is no room for complacency because the risks for financial stability remain high, especially since the credit cycle has not yet reached a trough," said the ECB's Financial Stability Report.
"Policymakers and market participants will have to be especially alert in the period ahead," it added.
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