Concern grew for the stability of Spain's place in the fragile eurozone economy after reports of a rise in the level of bad loans on the books of its banks and word from the government Friday that it may have to revise its 2011 budget deficit upwards for a second time.
Time to breathe a sigh of relief, with resolution of the Greek bailout? Not so fast. Greece is likely to need re-adjustments to its plan  Plenty of challenges remain in the eurozone; PIMCO's El-Erian says Portugal is next . In fact, as Jeffry Frieden and I argue, the resolution of the problems facing eurozone policymakers is likely to be contentious and prolonged.
MUMBAI: Banks willing to take a hair-cut as move will help reduce bad loans in books, besides their fortunes won't depend on the performance of asset reconstruction companies. State-run banks are finally ready to bite the bullet on taking hair-cuts in selling loans to asset reconstruction companies (ARC). Large PSU banks like State Bank of India, Bank of Baroda and Bank of India favour selling bad loans on all-cash basis instead of ARCs security receipts (SRs) for taking non-performing loans off their books, people familiar with the move said.
Reuters reports Eurozone Unemployment Reaches Near 15-Year High
Unemployment in the euro zone reached its highest level in almost 15 years in February, with more than 17 million people out of work, and economists said they expected job office queues to grow even longer later this year.
NEW DELHI: India's largest public sector lender State Bank of India, which reported Rs 98,173 crore or $15 billion in gross non-performing loans (GNPA), does not seem to worry the analysts' community at large. Most analysts are of the view that the worst is almost over for SBI.
The bank's asset quality deteriorated further in Q4, with gross non-performing assets (NPA as a percentage of gross advances) rising to 6.5 per cent from 4.25 per cent recorded in the year-ago period.
MUMBAI: Ahead of the March quarter earnings season, which may see many banks' profits collapse, top lenders met the Reserve Bank of India's (RBI) executives seeking relaxation in bad loan norms. But the central bank seems to have stood its ground on the road map to clean up bank books by March 2017. On Tuesday, senior bank officials, led by State Bank of India chairman Arundhati Bhattacharya, sought approval from the central bank that they should be allowed to segregate loans of distressed companies which RBI forced them to recognise in two parts -sustainable loans and unsustainable loans.
The institutions are able to sell off assets rapidly because buyers, such as US investment groups, are keen to grab a slice of the British market and see the loans as a good way to cash in on the UK’s relatively strong economic recovery, according to PwC.
By contrast banks in Germany and Italy are only expected to sell loans worth €20bn-€25bn each.
By Valentina Za and Silvia AloisiMILAN (Reuters) - A drive by Italian banks to come clean on bad loans during a European bank health check may force them to raise as much as 20 billion euros in capital, three times more than that penciled in so far, to shore up their balance sheets.
One of the mysteries surrounding the insolvent, and already once bailed out Spanish banking sector, has been why are reported bad loans - sharply rising as they may be - still as low as they are currently. Courtesy of the just completed bank earnings season, and a WSJ report, we now know why: it turns out that for the past several years, instead of accurately designating non-performing loans, banks would constantly "refinance" bad loans making them appear viable even though banks have known full well there would be zero recoveries on those loans.