German banks face new set of risks as contagion spreads across Europe
The rapid escalation of the sovereign debt crisis in Europe poses a serious threat to bank stability, according to the Bundesbank's Financial Stability Review, published on Friday.
The report says risks to the German financial system had grown "perceptibly" as the sovereign debt crisis "worsened and widened" over the summer of 2011. It said this was reinforced by the risk that Italy and Spain may join the three Troika programme countries – Greece, Ireland and Portugal – in being shut out of
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