Business

EU banks pulled billions from Aus

THINKSTOCK

EUROPE'S troubled banks accelerated efforts to pull loans from countries around the world, including Australia, towards the end of last year as the euro zone debt crisis intensified.

Figures released by the Bank for International Settlements in Switzerland show Europe's banks cut more than $US8 billion ($7.56 billion) worth from the Australian economy as they began feeling the funding squeeze at home.

During the second half of last year, most European banks began selling down their international loan portfolio or simply turning off the lending tap, the BIS said.
Advertisement: Story continues below

This coincided with a period in which many large Australian companies were attempting to refinance loans they had locked in during the global financial crisis.

''Pressures on European banks to deleverage increased towards the end of 2011 as funding strains intensified and regulators imposed new [capital] targets,'' the BIS said in its March quarterly review, released this morning. However, the report found it was largely an orderly exit by European banks and other global banks and bond markets were able to step in to replace financing. This helped Australian businesses avoid a credit squeeze.

Read more at Brisbanetimes.com.au
 

Topics:  banks, contagion, economy, europe, eurozone, sovereign debt crisis


Join the Community.

Get your local news, your way.

Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Up front with Kim and Jimmy at Tintenbar

STATE OF BLISS: Kim Banffy will play at The UpFront Club this weekend.

KIM Banffy (pictured) and Jimmy Dowling at Tintenbar

Fight for skate park continues

The Thank You campaign from WASP.

"Thank you" campaign launched to reassure councillors

Milestone for Northern Rivers church

CELEBRATION: Pastor Allan Jones and Elaine McCormack of the Alstonville Baptist Church are looking forward to the celebration for the church’s 60th anniversary.

Alstonville Baptists celebrate 60th anniversary

Latest deals and offers

Calling all musos for NCEIA Dolphin awards

ENTRIES are open to independent musicians in the (02) 66 area code to audition with their original music for a spot on the NCEIA Dolphin Music Awards 2016.

Up front with Kim and Jimmy at Tintenbar

STATE OF BLISS: Kim Banffy will play at The UpFront Club this weekend.

KIM Banffy (pictured) and Jimmy Dowling at Tintenbar

Fight for skate park continues

The Thank You campaign from WASP.

"Thank you" campaign launched to reassure councillors

Milestone for Northern Rivers church

CELEBRATION: Pastor Allan Jones and Elaine McCormack of the Alstonville Baptist Church are looking forward to the celebration for the church’s 60th anniversary.

Alstonville Baptists celebrate 60th anniversary

CSG reference in draft plan is a ‘betrayal of our community’

Ballina Councillor, Jeff Johnson, will stand as  an Independent Candidate for the electorate of Ballina at the State election on 28 March. Photo Contributed

Ballina councillor says the North Coast should be an exclusion zone.

Remembering those lost in war

Flags fly at Ballina’s Anzac Day service.

Moving Ballina Shire Anzac Day events

See what’s on in this week’s gig guide

RHYTHM: Grace Barbe will be in Nimbin this Weekend as part of the Black Magic Woman show.

We have plenty of music gigs this week in the area.

British family bashed in Thailand

Family beaten and kicked unconscious by gang in Thailand.

Family beaten and kicked unconscious by gang in Thailand.

Ben Hunt wary of Sharks Halfback

Ben Hunt of the Broncos looks to pass during the round 23 NRL match between the Brisbane Broncos and the St George Illawarra Dragons at Suncorp Stadium.

Ben Hunt talks about Cronulla's Chad Townsend.

Broncos prepare for Sharks

Defensive training session at the Broncos

Tough defensive session in preparation for Sharks game.

How a sacked real estate agent made $725k in four months

Agent is now under investigation by the industry watchdog

VIDEO: Art Deco fan pays $835,000 for Imperial Hotel

No Caption

Iconic "Impy" sold at a bargan price to bidder who loves Art Deco.

RBA warns of future apartment oversupply

Toowoomba: Crest Apartments and Burke & Wills, Ruthven Street ( view from Neil Street) Photo Bev Lacey / The Chronicle

RBA says oversupply of apartments poses risk to household finances