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Tuesday, Andreas Schmitz President of the Federal Association of German Bank said in an interview to the Financial Times that Germany still remains at the risk of a credit crunch. He said there is a real danger of a credit crunch in the largest Eurozone economy.
Schmitz holds the view that European Central Bank's liquidity was not helping banks' capital situation especially when concerned about ratings downgrades. At present, it looks as if banks have satisfactory capital positions, but if more risks come out in the remainder of this year, then one or the other would require more capital.
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