European bank risks 'on the rise'

13 October 2011

The financial crisis in Greece is serving to quickly increase risks to banks across Europe, it has been suggested.

Martin Andersson, director-general of Sweden's Financial Supervisory Authority, said these threats are mounting at a rapid pace, as the fallout from the country's economic problems threatens to spread throughout the continent.

Speaking to Bloomberg, the industry figure claimed there are no positive signs to cling on to at present, with matters getting considerably worse as time progresses.

"We might end up in a situation similar to what happened in 2008. And then of course there will be problems with liquidity," Mr Andersson warned.

His comments came after Jean-Claude Trichet, president of the European Central Bank (ECB) - which has a primary goal of maintaining the purchasing power of the euro - claimed the debt crisis in the region had come to a systemic dimension, with decisive action required in order to tackle the problems adequately.

By Asim Shah

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