European banks face major cash crunch due to cheap oil

More than a dozen European banks facing exposure in excess of $100 billion to energy sector loans may need to sell assets to bolster against future losses. Potential buyers of those assets include a mix of large private equity firms, a select group of pension investors, U.S. banks and hedge funds. Due to the recent decline in major European banks’ shares and increasing scrutiny over the bad loans the banks hold, investors are starting to gravitate toward the idea of getting actively involved in European banking names. “European banks are under pressure because they have to continually raise capital ratios” in order to offset troubled loans, Julien Jarmoszko, senior investment manager at S&P Capital IQ, told CNBC.com. “We’re seeing more restructuring being initiated.”

Source: European banks face major cash crunch

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