6/11/2009

The European Central Bank is closely watching challenges facing 25 banks that were deemed crucial to the system's overall health and said if the economic downturn continues too long, another crisis could develop. Dejan Krusec, financial-stability expert at the ECB, said the financial institutions will survive if the economic recovery is "V shaped" and relatively quick. "If this is 'U shaped', the banks will have problems. There are 25 banks we monitor that are strategically important," he said.

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