Moody's: Caution Reigns Over Germany For 2003 - Sam Theodore Predicts Ongoing Difficulties...

This year has started as another uncertain year for many European banks, against the backdrop of economic problems in several countries. Many banks' earnings should remain affected by higher loan-loss provisions, as well as by lower revenues, owing to a decline in lending volumes and in fee- generating activities. That said, we do not anticipate an increase in systemic risk across the European banking industry.

Germany

Banks should remain under stress through 2003. The German market is likely to remain weak and solutions for economic recovery remain constra