European banks prepare for worst, hoard cash

Jan 20 (IFR) - European banks are preparing for a potential worsening of the region's sovereign and banking crisis, with many firms stockpiling cash and cutting back on loans to new clients as they seek to protect themselves against a possible seizing-up of financial markets. Faced with 650 billion euros of debt coming due this year - almost 40 percent of which matures before the end of March - lenders are choosing to build up a cash cushion to ensure they can cover redemptions, creating a squeeze on the wider economy in the process. ...