Room for Manoeuvre (Hesse et al.)

Room for manoeuvre: The deleveraging story of Eurozone banks since 2008 by Heiko Hesse, Claus Puhr, Stefan W. Schmits and Ralph Spitzer published by VOXEU. “Europe’s heavily overleveraged banks are now under European Banking Authority orders to rapidly raise their capital-asset rations. Many fear this will trigger a contractionary shrinking of assets rather than prudential increases in capital. This column presents new evidence that these fears are unfounded. Eurozone banks have room for manoeuvre.” See PDF Attached