IMF: Eurozone banks still unable to support growth

Eurozone banks remain undercapitalized and unfit to lend at levels needed to restore sustainable growth in the currency area, where yet another recovery has stalled, the International Monetary Fund said Wednesday.
The Washington-based crisis lender's newly issued Global Financial Stability Report included an analysis of 300 large banks across the world's advanced economies.
In the eurozone, the IMF found that banks representing about 70 per cent of total assets were too weak to supply the credit needed to support economic recovery, dpa reported.
The fraction of assets held by feeble banks was far lower in the other advanced economies.
"These banks will need a more fundamental overhaul of their business models," said IMF financial counsellor Jose Vinals.