The ‘doom loop’ that ties Italian banks

- "non-performing loans of banks amount to €360bn, or about 18 per cent of total loans and 22 per cent of gross domestic product"? No. NPLs amount to €89bn net book value, or about 5,4 pc gross domestic product (following your calculations). - The mere fact you consider that "Buying government bonds cheaply is one of the few options left to them to maintain profitability", shows how these sovereign holdings are not a stability (or "potentially lethal connection") issue. - NPLs came into existence, not because of average "no economic growth from the day it adopted the euro in 1999", but because of the collapse of gdp in the years 2011-2014. - "Profitability" is, by no meaning, the result of gdp growth only, but of sound banking management. => Were you right on that, you'd see the profitability of Barclay's, RBS, DB, etc going up to the sky these days: but as you are dead wrong (and pretty misinformed), the opposite is happening.

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