“Portugal’s central bank said on Tuesday the country’s banks faced an ‘intolerable risk’ unless the government manages to bring its public spending under control as it struggles to combat a debt crisis.

The Bank of Portugal report spelled out a tricky scenario for the banks as concerns grew in markets over the nation’s prospects of avoiding a bailout and thus becoming the next domino to fall in the euro zone.”

(Source: UPDATE 1-Portugal banks at risk unless public spending cut | Reuters)