But German banks' unwillingness to writedown their bad loans--both from investments before the credit crisis and as a result of the recession--could lead to more economic trouble for the region.
Michio Ochi, who heads the government commission charged with financial-sector reform, said it would slow down their write-offs of badloans, and hamper their return to health (although the soft policies pursued by Mr Ochi himself are also often blamed for the banks' lingering malaise).