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


Stay Connected

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

Court blows away ridge-top wedding venue plans

court generic

The approval for a wedding venue at Talofa has been overturned.

Six songs Aussie rock icons love the most

COMING SOON: Angry Anderson, frontman of Rose Tattoo.

Members of AC/DC, The Angels and Rose Tattoo are coming to Ballina

Legal poppies will make you die, not high

IN FLANDERS FIELDS. The poppy has become the endearing symbol of Remembrance Day. Photo Contributed

NSW to lift ban on poppy farming for medical use

Latest deals and offers

OPINION: The price of good financial advice

CHRISTOPH Schnelle wonders how much of a difference it makes to have an adviser and finds a firm that has tried to put the difference into numbers.

Court blows away ridge-top wedding venue plans

court generic

The approval for a wedding venue at Talofa has been overturned.

Six songs Aussie rock icons love the most

COMING SOON: Angry Anderson, frontman of Rose Tattoo.

Members of AC/DC, The Angels and Rose Tattoo are coming to Ballina

Legal poppies will make you die, not high

IN FLANDERS FIELDS. The poppy has become the endearing symbol of Remembrance Day. Photo Contributed

NSW to lift ban on poppy farming for medical use

Police investigating Ballina incident

Do you recognise this man? Police would like to speak with him.

Can you identify this man?

John Williamson winding up for another Gympie Muster

John Williamson is bringing some new songs and artists to this year's Muster.

John Williamson is back and ready to put on his best show ever

Gladstone couple's spontaneous Gympie Muster wedding

Craig Oglesby and Brenda Strong celebrate their wedding at the Gympie Muster with punters in front of the Main Stage.

The Gympie Music Muster was the perfect place for a wedding.

Australian Survivor's Peter: I'm no quitter

Australian Survivor contestant Peter Fiegehen.

ILLNESS forces castaway's early exit from Samoa.

Diva's sister on soliciting charge

FILE - In this May 14, 2016 file photo, Mariah Carey attends the 27th Annual GLAAD Media Awards, in New York. Carey will appear on the Oct. 5 episode of the Fox series, \"Empire,\" the network confirmed Monday at a TV critics bi-annual press tour. (Photo by Charles Sykes/Invision/AP, File)

Mariah Carey's sister has been arrested on charges of prostitution.

Tom Cruise private jets his gym kit around the world

Tom Cruise

Tom Cruise charters private to take his gym kit around the world

Movie behind Depp and Heard split to be released

Soon you'll be able to see the movie that ended the marriage

Bindi's boyfriend helps release huge croc

Chandler (far right) helped the jump team.

Chandler Powell helps catch Duncan the croc

REVEALED: Pat Rafter's $18m Coast house on the market

Check out the photos of the Coast's most expensive property for sale

The "correction we had to have" in Gladstone's rentals

UPWARD MARCH: The rental vacancy rate in Gladstone has improved for the first time in more than a year, providing a confidence boost in the market.

Vacancy rates improve with signs that things are getting betterF

ISLAND FOR SALE: Cheap Fraser Coast island drops price again

Suna Island in the Great Sandy Strait will be auctioned by Ray White Hervey Bay on Saturday morning.

This is the cheapest island you will find for sale in Australia

How a family home can fit on a 250sq m block

This is what you can build on 250m2.

Here's the floor plan of a home built on 250sq m

Investors eye Gladstone's $4m island with resort approval

UP FOR SALE: Turtle Island is on the market.

CHINESE and Sydney investors flag interest in Gladstone island.

Take a sneak peek at this $19m Whitsunday mansion

Mandalay House features a private helipad.

Mandalay is currently on the market with an asking price of $19m