Eurozone banks in $68.9bn capital black hole

Eurozone banks in $68.9bn capital black hole
Davide Serra - Founder and CEO, Algebris Investments LLP

Banks operating within the eurozone are facing a new capital black hole of as much as $68.9 billion, according to a leading financial analyst in the UK.

Davide Serra, the UK government's adviser, said that the stress tests recently carried out in Europe indicated fresh problems in the region.

He explained that Germany, which is regarded as a leading economy in the eurozone, has "one of the worst banking systems in the world".

Mr Serra also noted that banks operating in Greece and Portugal are likely to lead more capital.

“I expect more bad news coming out of Germany. The strongest German Panzer was unbeatable, but there is only one problem - they have one of the worst banking systems in the world," he told the Telegraph.

The expert went on to say that the UK financial sector is more robust and transparent than the systems operating in many EU nations.

“The change in leadership [at the Bank of England] with Mark Carney is massively welcomed. The UK is now basically clean," he concluded.

By Gary Cooper

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