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Thu 10 Oct 2009IMF warns that banks have yet to reveal half their likely losses

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 yesterday, warning there was still a "significant" risk of another downward lurch in the global recession.

José Viñals, the fund's head of monetary and capital markets, said: "In order to provide the credit that the economic recovery will need, you need to have some muscle as a bank - that means having, among other things, sufficient capital. Banks need more capital - they need more capital in Europe; they need more capital in the US; they need more capital in other parts of the world in order to have enough strength to provide more lending."

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