Eurozone Banks Still Need To Drop €3.2 Trillion In Assets: RBS

Eurozone banks have been aggressively deleveraging over the last year, shrinking by €2.9 trillion since May 2012, but they will need to shed another €3.2 trillion before the European financial sector is healthy, according to Alberto Gallo, Shikhar Sethi, and Lee Tyrrell-Hendry at RBS Macro Credit Research.

Eurozone banks valuation

Eurozone banks are still valued at €32 trillion, more than three times the size of the entire Eurozone economy. Large banks will need to cut €661 billion in assets and raise €47 billion in...