The International Monetary Fund's chief economist Pierre-Olivier Gorencha said the fund remains concerned about the recent disruptions in the banking sector, despite moves by the US and Swiss authorities to deal with their troubled banks.
"The story is far from over," he said, noting, "EU banks are not immune from problems as long as the bloc does not go ahead with completing the long-discussed mechanisms for dealing with troubled banks." He noted that the U.S. banking sector is generally well-positioned to weather recent turmoil, but the experience may cast a shadow over future credit conditions.
Source: (Asharq Al-Awsat Newspaper, Edited)
