In the European Central Bank's June Financial Stability Report, policymakers warn that commercial banks in the eurozone could face an additional $283 billion in losses by the end of next year. "Hard-to-value assets have remained on bank balance sheets, and the marked deterioration in the economic outlook has created concerns about the potential for sizable loan losses," the ECB said. Lucas Papademos, vice president of the ECB, warned that "there is no room for complacency because the risks for financial stability remain high, also bearing in mind that the credit cycle has not yet reached a trough."

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