The second problem has been the emergence of a market perception that significant European banks faced a serious problem with regard to cross-border holdings of sovereign debt.
The matching figures for the USA and Japan are 152 per cent and 68 per cent, respectively. However, equity markets in the euro area are growing fast. The ratio of new issuance to market capitalisation averages over 4 per cent. This is twice as much as has been achieved in the USA or Japan.