THE sovereign debt crisis has created worry enough for European banks, but there is another threat that has not garnered as much notice. Financial institutions must repay or roll over trillions of dollars in short-term borrowing in the next two years.
The European Central Bank, the Bank of England and the International Monetary Fund have all warned of a looming crunch, especially in Europe, where banks have struggled to raise money.
The concern is that banks hungry for refinancing will compete with governments - which must also roll over huge sums - for the bond market's favour. As a result, credit for business and consumers could become more costly and scarce.
