July, 15 2016 by lsr team

Italian banks and Brexit contagion

With central banks ready to raid their emergency tool kits and the ECB rapidly absorbing most of the euro area’s bond market, it is perhaps understandable that Brexit hasn’t triggered a wider deterioration in European financial conditions. The economy however will take a hit in coming months as the UK is an important market for many euro area exporters.

That said, Brexit has had a significant impact on European banks, especially Italian lenders. Currently, Italian non-performing loans stand at around €210bn-360bn, or around 20% of GDP. Click above to watch the full video or below for our latest report on Italian banks and Brexit contagion.