Rising global securities prices reduced the International Monetary Fund's estimate of bank losses, but banks around the world – especially in Europe – are still likely to face additional write-downs of $1.5 trillion (€1 trillion) by the end of next year, the IMF said.

Overall, the IMF calculates that the global financial crisis will produce $3.4 trillion in losses for financial institutions between 2007 and 2010, of which a chunk has already been recognised. That estimate is $600bn less than the IMF forecast in April, largely reflecting an increase in the prices of securities held by financial institutions since then.