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German Banks to Slow Economic Recovery
German Bank Balance Sheets to Hinder Economic Recovery Probably for Next Two Years
SummaryAsset Conclusions: Weak German bank balance sheets to keep economy underperforming for next two years; underweight German assets now.
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The weakness of German bank balance sheets will prove an obstacle for a recovery in macro-economic recovery for at least the next two years. It is significant that the six leading German economic institutes in their spring statement on Tuesday cited a variety of economic and structural reasons for the current stagnation in German bank lending, stating that the signs of a credit crunch are 'not unequivocal.'
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