French banks have just published their results for the second quarter, and the media deem them globally “good”. They don’t seem too finicky... We had already discussed the substance matter in a December 2017 article titled "French Banks Are Much More Dangerous than American Banks". But in this article I would like to underline the bad loans – loans that will not be reimbursed, or partially only – a time bomb in the banks’ balance sheets. According to the economist Jean-Pierre Chevallier, BNP-Baribas has a tendency to underestimate their weight. Using unpublished accounting records, he estimates that on top of the €39.902 billion of NPLs (non-performing loans), one must add €13.929 billion in potential losses on relatively safe loans, bringing up the total to €53.831 billion, or 7.4% of the total outstanding loans. This is starting to look worrisome. And if one recalculates the bank’s leverage, we see it at 35.45 (or 1 euro in cash for 35 euro in liabilities),...
from GoldBroker.com https://www.goldbroker.com/news/are-non-performing-loans-becoming-new-danger-for-french-banks-1371
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