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Monday, July 22, 2013

Eurozone banking system massively oversized.

At €33T, the eurozone banking system's assets are worth 3 1/2 times the bloc's GDP, RBS notes, adding that the sector needs to shrink its collective balance sheet by €2.7T over the next three years for the situation to be "sustainable." Otherwise, governments may be unable to support the industry in a crisis. In contrast, the U.S. sector is about the same size as the broad economy.

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