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



Local Real Estate

finda logo
Featured Real Estate
Wandal Beauty $275,000
House 3 1 2
What a Beauty! AUCTION
House 5 2 4
Extra Rooms For... $339,000
House 4 1 2
POSITION, PEACEFUL ON... $269,000
House 4 1 2

Featured Jobs

finda logo

Northern Rivers jobs listed daily

Featured Jobs
CONTRACT CATERER Casino Contract
Junior Developer Bangalow Full Time
Junior Developer Bangalow Full Time 45,000 - 45,000 PerAnnum
NEED EXTRA MONEY?... $50.00
NEED EXTRA MONEY? $50-$300 PW + AND EXERCISE ? Drop and collect ...



Local Partners

Local Profile

Stay Connected

You can change the newsletters you are subscribed to when you edit your profile

Edit Profile


Horoscopes

Virgo

By being clear and decisive in what you want today, you will free up a lot more energy for the things you really yearn for in your spare time.

read more

Marketplace

Special Offers & Promotions

Compare & Save