European Central Bank chief Jean-Claude Trichet last week warned that eurozone banks need to strengthen their balance sheets, as worries mount over the sector's exposure to Greek debt.
The Bank of China's decision to halt on foreign exchange swaps with several European banks, as well as the ECB's money market operations, were the latest signs that debt and economic woes are spreading to the financial sector.
"The European banking sector has to reinforce its balance sheet and improve its resilience," Trichet said, reinforcing fears of an impending credit crunch.
To read the full, original article click on this link: SMEs brace for double whammy as credit crunch returns | EurActiv
