Disruption to funding markets is particularly problematic for all banks since they regularly need to renew portions of their funding. The bout of turbulence in international financial markets has persisted for longer than many commentators would have predicted. Since mid-2007, there remain ongoing tensions in international financial markets amid a steady flow of negative news.
This is the only way to break the present vicious circle whereby the lack of growth maintains the mistrust of Europe, which in turn is preventing us from taking vital joint initiatives to strengthen growth.