Sometimes you have to read something twice because you thought it was a mistake.  I had that moment in an article in the paper version of the Financial Times this morning.  It lists European Banks, and shows the percentage their assets are of their country’s GDP.  Here is a synopsis, with just those that are close or exceed their country’s GDP.

For fun I added the North American view, and even more fun I added Microsoft, one of the largest companies in North America.  It shows that the relative size of Banks to the European economies is a significant proportion, whereas in North America not so much.  It also suggests to me at least, that the US bailout package needs to be clear on whom it is bailing out. The European Banks were happy to pick up the securitised mortgages from US Banks, and are now sufferring the consequences.

The matter of funding and capital base of Banks’ is the topic of the day.  This relative to loan quality and liquidity is what will ensure that Bank will make it through the crisis or not.  It is interesting that the above list are all familiar names during the crisis over the last few months.

In particular, Iceland, Switzerland, Ireland and Belgium having high percentages, on much smaller economies are worrisome.