Banks around the world still have to reveal about half their likely losses resulting from the financial and economic crisis, the International Monetary Fund said on Wednesday, warning there was still a “significant” risk of another downward lurch in the global recession.
A failure to reveal the true scale of the losses they are likely to face and boost capital held in the banks would undermine the economies of the US, the UK and the eurozone and could generate a renewed vicious spiral where weak banks damage economic prospects, raising default rates and further threatening the health of banks, the IMF said.
