Stressed banks may hamper deleveraging in eurozone periphery – ECB paper

The European Central Bank
Annabel Jeffery

Stressed banking sectors may be hampering efforts to deleverage non-financial corporations in peripheral eurozone countries, a working paper by the European Central Bank says.

In Do we want these two to tango? On zombie firms and stressed banks in Europe, Manuela Storz et al look at data from seven eurozone countries. These include France and Germany, as well as five stressed peripheral countries.

The authors use a commercially produced dataset from 2010 to 2014 on more than 400,000 small and

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