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It is also one of the biggest problems in Italy's weak banking system.
Its problems include a debt crisis, an uncompetitive economy and a weak banking sector, rather than exchange rate instability.
It has also indirectly injected hundreds of billions dollars into weak banking systems in Greece and Ireland.
Leading shares have ended the day lower, as weak banking stocks overshadowed strong oil and mining companies.
The central bank's short-term interest rates are already near zero, but fears about the nation's weak banking system have made additional steps more likely.
On the surface, the raw economic numbers in Britain are as bad as anywhere in Europe: a deficit of 10 percent of gross domestic product, a weak banking sector and sluggish economic growth that continues to be revised downward.
Similar(34)
The EFSF/ESM could recapitalise weak banks.
That pressure will eventually expose the weak banks.
Weak banks have been nationalized or absorbed by larger rivals.
It's impossible to tell who the weak banks are.
Can the economy recover even with weak banks?
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