Direct and decisive action by EU governments to re capitalize banks may be crucial…..
I’m not sure that this would resolve anything….( I’m no expert….so it’s just MHO ). When the Bank Of England introduced the Quantitative Easing the influx of cash didn’t filter its way to consumers in the form of loans, mortgages etc….it basically helped prop up the Bank’s balance sheet. Why would Spanish lenders act differently..? The European Governments may be reluctant to plough billions into a bottomless pit….never to see the light of day again..?
Perhaps nature should take its course…..and let the weak die off…or be consumed by the strong………this would leave a leaner structure, and hopefully a more focussed financial sector.