At €33T, the eurozone banking system's assets are worth three and a half times the currency...

|By:, SA News Editor

At €33T, the eurozone banking system's assets are worth three and a half times the currency bloc's GDP, Royal Bank of Scotland notes, adding that the sector needs to shrink its collective balance sheet by €2.7T over the next three years in order for the situation to remain "sustainable." By comparison, the U.S. banking sector is about the same size as the broad economy. "If banks are three times the size of their underlying economy, then governments will not be able to support them all" in a crisis, RBS' Alberto Gallo reasons. (FT)