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Fears mount over European banks’ ability to cope with coronavirus

Lenders entered the coronavirus crisis in worse shape than US rivals after years spent grappling with low interest rates and stiff regulation

Worries are mounting about the ability of Europe’s financial system, in particular its fragile banks, to make it through the coronavirus crisis unscathed.

Funding costs rose Friday. Ratings companies also downgraded several banks. And policy makers are worried about weaker lenders in hard-hit Southern European economies and Germany.

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