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By Laura Noonan LONDON (Reuters) - Most of Europe's big banks shed risky assets in the quarter to September, but they have yet to take extra provisions against doubtful loans to show they have put the financial crisis behind them in time for a critical review by regulators. After reckless lending brought several banks and some governments to their knees during the global crisis, which is still playing itself out in a number of euro zone countries, next year's Asset Quality Review (AQR) by the European Central Bank will judge whether the banks have done enough to recognize and provide for losses on their loan books as of December 31. The results feed into EU-wide stress tests that assess whether banks need to raise more capital to insulate themselves against future economic and financial shocks. Assets such as unsecured personal loans, distressed commercial loans and certain derivatives carry a higher risk weighting, while government bonds are unweighted.
BANGKOK (AP) — Thailand's main opposition party announced Sunday it was resigning from Parliament to protest what it called "the illegitimacy" of the government. The move deepens the country's latest political crisis a day before new street demonstrations that many fear could turn violent.
By Jack Kim and Jane Chung SEOUL (Reuters) - South Korea said on Sunday it has extended its air defense zone to partially overlap with a similar zone declared by China two weeks ago that has sharply raised regional tensions. Beijing's declaration of an air defense identification zone in an area that includes islands at the heart of a territorial dispute with Japan has triggered protests from the United States and its close allies Japan and South Korea. Announcing the expansion of its own zone to include two territorial islands to the south and a submerged rock also claimed by China, South Korea's Defence Ministry said the move would not infringe on neighboring countries' sovereignty.