Chart of the Week: Europe needs healthier banks

Large loan-loss provisions hamper Europe’s banks. These provisions cover things like bad loans and customer defaults and cost the sector a lot. The problem is particularly acute in Portugal and Italy but still prevalent in all the major European economies. The region needs recovery in its banking sector before the long-awaited upswing in its indices can begin. Until Europe’s banks free themselves from bad debt, the region will remain stuck in economic mud. 

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