![Banking in Europe](Banking in Europe.jpg)
French and German banks understress from lending money to Italy for the past decade
German banks lent money to the Greek people, which led to an economic collapse in Greece
The financial sector in France and Germany have further problems with social and political problems in Europe
The reason is because of the French and German banks lending money to Italy whose economy has been mismanaged and over leveraged in debt.
This is the same problem that faced financial institutions when the financial crash happened in 2008 and led to a global panic.
Banks in Germany lent Greece and the Greek people government borrowing and credit for the people, with a Greek government which didn't collect taxes and the Greek people borrowed beyond their means and when the global financial sector stopped lending or became too distressed it led to the economic collapse in Greece.
The same preparatory behaviour in major banks in France and Germany wanting to make a fast buck has lent the Italian government over the past ten years a record amount of money, which surpasses the GDP of Italy.
It is a timebomb waiting to explode and these top French and German banks, which are global financial powerhouses in the finance sector are and have been crossing their fingers with white knuckles, hoping this situation turns around, and fast.
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With the newly elected centre right political party Brothers of Italy (Fratelli d'Italia) forming a coalition government under their leader Giorgia Meloni being elected in the recent Italian General Election in October 2022, will give a fresh lease of life in Italy, and hopefully pray that these French and German banks start to get returns on their billions of euros they've lent over the past decade.
With the Covid-19 virus out of control in China and the war coming up to a year in Ukraine, pushing inflation up and oil and gas rocketing in price, these top French and German banks will need a miracle to be able to keep their heads above water.