InfoAnda - Eurozone debt could squeeze banks: experts

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

Clinton prods Netanyahu on Mideast peace talks | 14 August 2010
Samsung expects strong 4th-quarter profit | 7 January 2010
Pakistan and India seek to revive peace talks | 15 July 2010

Report: Morgan, Mitsubishi UFJ to merge brokerages | 11 February 2009

Forum Views () Forum Replies ()

Read more with google mobile : Eurozone debt could squeeze banks: experts

Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Photos Sitemap Eurozone debt could squeeze banks: experts AFP - 1 hour 38 minutes ago Send IM Story Print FRANKFURT (AFP) - – Eurozone banks could face a credit crunch as they compete with governments for funds in coming years, analysts and the European Central Bank say. The ECB's Financial Stability Review said last week that banks must renew about 800 billion euros (950 billion dollars) in debt by the end of 2012, and that they would be competing head-on with governments in bond markets. "In view of the considerable near-term funding needs of euro area governments, a particular concern is the risk of bank bond issuance being crowded out, making it challenging to roll over a sizeable amount of maturing bonds by the end of 2012," the central bank said. That would in turn crimp bank lending to businesses and households, which has begun to recover and is needed to keep economies growing to replenish state finances. Deficits and debt in many countries have shot up because of spending to overcome the global economic crisis to levels causing strains on bond markets. Government debt in the 16-nation zone is forecast to reach 88.5 percent of gross domestic product in 2011, or roughly 8.3 trillion euros (10.0 trillion dollars). Countries borrowed more than 800 billion euros in 2009 alone, partly to bail out banks, which in turn then bought public debt that had been driven up by the bail-outs. "We should really take this seriously," ING senior economist Carsten Brzeski told AFP in a reference to the risk of public debt crowding out bank borrowing. Asked if the process of banks buying public debt after being bailed out with state funds resembled the shady practice of using multiple bank accounts to cover rotating overdrafts, he said: "I think the parallel holds very well in terms of the inner eurozone circle." Brzeski said that "pushing it from one to another and back is kind of a multiplier effect", but noted that governments held underlying assets and their economies generated value that underpinned the process. "It only works if the underlying fundamentals are healthy," the economist said. "Otherwise it just goes up in smoke." With the ECB now buying public debt from banks, IHS Global Insight economist Timo Klein added: "I don't think there is now at least any acute danger of some kind of market failure or seizure. "The risks at the moment are moving away from the banks and towards the ECB." Barclays Capital economist Thorsten Polleit told AFP: "One can imagine that central banks will not only provide bank refinancing in the money market but also for longer maturities (that is maturities beyond one year) in the future." The ECB had hoped to withdraw from interbank markets as financing conditions normalised, but that plan was upset by raised concern that banks were exposed to big losses on debt from Greece, Ireland, Italy, Portugal and Spain. Commercial banks must now "adapt to the new environment, reduce their dependence on wholesale finance and put aside significant reserves for loan losses," said economics professor Moritz Schularick from Berlin's Free University. The ECB has warned that banks might have to write off 195 billion euros this year and next to reflect the lessened chances of full reimbursement on loans, and US and British officials are pressing eurozone leaders for rigorous stress tests of banks. Such tests aim to determine how a bank would fare if hit by a major event like a steep economic downturn or default by a major debtor. In October, EU finance ministers unveiled test results of 22 eurozone banks but "they came out with very vague results," Brzeski said, in contrast with detailed US tests credited with restoring confidence in big banks there. On Wednesday, British Financial Secretary to the Treasury Mark Hoban said: "A genuine, rigorous stress testing exercise is urgently needed to answer questions around solvency in severe market conditions." UniCredit chief economist Marco Annunziata noted that "lack of information is again playing a major role in undermining market sentiment, at least in Europe." Recommend Send IM Story Print News Search Top Stories New world record for longest poker game Eurozone debt could squeeze banks: experts New anti-cancer drug extends life of melanoma victims IATA meets as airline industry shows signs of recovery Obama vows help as BP sees oil spill progress More Top Stories » Most Popular Most Viewed Most Recommended Aid ship intercepted by Israeli troops: Gaza committee Nadal calls truce with title rival Soderling McDonald's recalls 12 mln tainted 'Shrek' glasses US employment report sparks global recovery fears Obama vows help as BP sees oil spill progress More Most Viewed » Hubble catches planet being devoured by its star The point about pain: New study sheds light on acupuncture Ocean fish could disappear in 40 years: UN Paris museum burglar grabs 120-million-dollar art haul US team creates first 'synthetic life' More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos World Cup 2010 Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

Other News on Sunday, 6 June 2010
Medvedev hopes 'irresponsible' Iran listening
Credit card fraudsters take aim at World Cup
Bomb at Afghan governor office kills 1, wounds 14
Romania: the last journey now broadcast live
Pro-Palestinian march in Paris draws Jews, Muslims |
Obama vows help as BP sees oil spill progress
Brazil's Rousseff rises in poll, ties with Serra |
Defeat won't hit confidence, vows Aussie coach
Protest-hit Bollywood awards get under way in Sri Lanka
Protest-hit Bollywood awards get under way in Sri Lanka
World Cup bypasses South Africa's neighbours
Russia urges NATO to fight Afghan drug trafficking
IATA meets as airline industry shows signs of recovery
Official says U.N.'s Ban offers panel on Israeli ship raid |
Peru promises a fair trial for Dutch murder suspect
New world record for longest poker game
Bomb at Afghan governor office kills 1, wounds 14
Eurozone debt could squeeze banks: experts
Suicide bomber kills four police in Iraqi capital |
New anti-cancer drug extends life of melanoma victims
Russia says world needs to do more for Afghanistan |
Yemeni officer, soldier die in suspected Qaeda ambush |
Next Japan PM to tap fiscal reformers |
Bashir says Darfur peace talks are final round |
N.Korea lashes out at UN drive over warship
Minimum and maximum temperatures in Celsius
'3 Idiots' sweeps Bollywood awards in Sri Lanka
Not forgotten: Remains of US soldier sought in Vietnam
Malaysian tycoon defends sports gambling
World Environment Day: Clinton Reiterates US Commitment
Japan's new PM to curb power of kingmaker Ozawa
Thai emergency powers raise justice, freedom fears
Call to improve Asia-Pacific relief coordination
Accidents prompt upgrade for Sydney Opera House
Bangladesh lifts ban on Facebook
Gates warns of more N.Korea 'provocations'
iPad imitators hope to bite into Apple's lead
Japan's new PM faces stagnant economy, debt mountain
Google to provide data to European authorities |
Bangladesh lifts Facebook ban |
Impressionism returns to Normandy with a homeland festival
New generation of Saudi novelists breaks taboos
Romania's city of Cluj sheds Dracula for film and art
Shakira performs before 85,000 people in Spain
'3 Idiots' sweeps Bollywood awards in Sri Lanka
More than 1,000 people create live Impressionist painting
Sotheby's to auction Lehman Brothers art collection
Greek gays rally against discrimination
Private collectors buy rare Orient Express coaches
Apple's Jobs expected to reveal new iPhone
Five killed, including 4 police, in Baghdad attacks
Foreigners 'rounded up' in Yemen anti-Qaeda sweep
Karzai orders review of prisoners' cases
Dell loses Taiwan consumer lawsuit: report
Iran opposition says regime playing into enemies' hands
China police crack down on hi-tech exam cheating
Oil spill cap catching about 10,000 barrels a day: BP
Afghan interior, intel chiefs resign over attack
Karzai orders review of Afghan detentions |
Karzai orders review of Afghan Taliban detentions
Two New Jersey Men Arrested On Terror Charges
Turkey hosts Eurasian summit amid Israel storm |
Karzai orders review of Taliban detentions
Obama Taps Clapper To Be Next Intelligence Chief
Thousands Rally In Support Of Arizona Immigration Bill
Gates, in Baku, seeks to shore up Afghan supply chain |
Bomb kills Afghan police officer, 2 civilians
Rival candidate for president new headache for Merkel |
Three Kurdish fighters killed in southeast Turkey |
Rwanda opposition asks U.S. to help defuse tension |
Pope says calm Mideast tensions now or more bloodshed |
Clinton seeks better LatAm ties despite friction
N.Korea rails at South's UN drive over warship
Australian police to probe Google over privacy
Thailand 'back' after unrest, PM says on first overseas trip
Apologetic BP ads get criticism, not sympathy
Taiwan First Lady to make landmark visit to Russia
Immigration law supporters rally at Ariz. Capitol
Canadian crosses Sydney Harbour Bridge on global walk
Australian police to probe Google over privacy issues |
US rockers The Pixies cancel Israel gig
'3 Idiots' movie sweeps annual Bollywood awards
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph	VPN on MacOSX	BlogMeter 1.01