International Monetary Fund: Eurozone banks have enough capital to withstand the pandemic

The International Monetary Fund said in a study today that eurozone banks have enough capital to withstand the impact of the coronavirus pandemic and finance an economic recovery despite the sectors badly hit by the coronavirus epidemic. The International Monetary Fund added, "While the epidemic will drain banks’ capital significantly, their reserves are large enough to bear the potential impact of the crisis.

With the right policies, banks will be able to support the recovery with new lending. " The International Monetary Fund confirmed that based on the January 2021 projections, banks in the 19 countries that share the euro will remain broadly resilient in the face of a deep recession in 2020 and a partial recovery this year.