Eurozone Interbank Activity Falls -- Reuters

Banking, finance, and taxes

Published: June 21, 2013 3:31 am

Last Updated: June 21, 2013 6:23 am

In a sign of a loss of confidence in the balance sheets of some of the European Union’s largest banks, interbank lending has fallen among large financial firms. The falloff of this practice was most acute during the EU credit crisis more than a year ago. A new round of the practice signals that many banks consider peers underfunded, at least in so far as they may hold bad assets — particularly of sovereign paper.

According to Reuters:

Euro zone banks are refusing to lend to peers in other countries in the common currency bloc, signaling a worrying fall in confidence that appears to have worsened since the Cyprus bailout earlier this year, data analyzed by Reuters showed.

In a trend that could reignite fears about the euro and its banks, European Central Bank data shows the share of interbank funding that crosses borders within the euro zone dropped by a third, to just 22.5 percent in April from 34.5 percent at the beginning of 2008.

Are You Ahead, or Behind on Retirement? (sponsor)

If you’re one of the over 4 Million Americans set to retire this year, you may want to pay attention. Many people have worked their whole lives preparing to retire without ever knowing the answer to the most important question: are you ahead, or behind on your retirement goals?

Don’t make the same mistake. It’s an easy question to answer. A quick conversation with a financial advisor can help you unpack your savings, spending, and goals for your money. With SmartAsset’s free tool, you can connect with vetted financial advisors in minutes.

Why wait? Click here to get started today!