As is so often the case, the truth lies somewhere between the two extremes. 3. Old accounts: the lingering legacy of the financial crisis The difficult situation faced by the banking sector is caused by the convergence of old and new challenges.
For some institutions, the malaise can be traced back to a heavy legacy that continues to burden them now: for many years, their success was fuelled by excessive credit growth and an overinflated financial market. When the financial market bubble finally burst, it exposed just how many business models were built on sand.