Banks: Europe’s banks have not done enough to get their balance sheets into shape

Clive Horwood, Peter Lee
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UBS credit analysts point out that banks in the eurozone have deleveraged far less aggressively than lenders in the other two most troubled jurisdictions in the financial crisis, the US and the UK, having already been among the most leveraged and wholesale dependent going into it. This has left them poorly positioned to deal with the large macroeconomic shocks that might now be at hand.