Recent stress tests, while admittedly not perfect, have proven useful to bring a degree of clarity over banks’ portfolio quality. When backed by credible financing plans, the tests have helped confidence in battered banking sectors. In Europe two major regional exercises are under way: a CEBS-coordinated and nationally-implemented testing of the largest EU-based bank groups, and a regional exercise by the IMF, both with expected results around September.… Read more
Tag: analysis
July 31 / 2009
A look at non-performing loans: the boomerang effect
Authors: Ralph De Haas and Stephan Knobloch , 16 July 2009.
When the global financial crisis hit the transition region, worries among policy makers centred on the local banking systems and the potential for financial contagion from west to east. And when unemployment started to rise and output declined sharply as of Q4 2008, the attention shifted towards the real-economic impact of the crisis.… Read more
July 16 / 2009
In defense of foreign banks
‘Banker’ has recently become somewhat of a dirty word and ‘foreign banker’ a most reviled sub-species. Over the last months foreign banks have, amongst other things, been accused of abandoning some of the emerging markets that have contributed so much to their profitability over the last decade.… Read more
May 19 / 2009
Category
Capital markets, Countries of Operation, Financial institutions, Global financial crisis, Syndications
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BIS data on cross-border flows – a closer look
Authors: Piroska Nagy (-7149) and Stephan Knobloch (-7065), 5 May 2009.
New BIS data for the last quarter of 2008 show that BIS-reporting banks significantly reduced their asset holdings across major regions of the world. While in absolute terms most of the reduction took place in advanced countries, in relative terms, emerging markets were hit harder.… Read more
May 11 / 2009