The sovereign debt crisis in the Eurozone has not only aggravated the macroeconomic conditions of the countries of the Eurozone but also, in turn, has deeply affected the balance sheets of global banks having exposures to these countries.
The political measures and announcements, co-ordinated initiatives of the Governments, and prolonged easing policies backed by unconventional measures of the central banks to provide a solution to the problems arising out of this crisis have not been able to evoke sustainable confidence in the financial markets.