GLOBAL ECONOMY: SUBPRIME EFFECT
As a matter of fact it is estimated that repossessions have already doubled in UK and some other European Markets. 
The potential credit losses will by pessimistic calculations lower the aggregate capital adequacy ratio at European banks by about 150 bps.
IMF’s Global Financial Stability Report precisely brings out the fact that domestic banks in Eastern Europe have built large negative net foreign positions as credit growth has outpaced domestic deposits. Given the size of bank losses and disruptions in bank funding and securitisation markets, Europe certainly seems to be at a greater risk. It is not only UK or Eastern Europe, which is witnessing renewed symptoms of the crisis. Italy’s economy has started shrinking, its GDP went down by 0.3% quarter-on-quarter in April-June 2008. German economy too shrank by 0.5% during the same period. Moreover, the whole Euro zone economy shrank 0.2% during Q2 2008....Continue
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
Read also :-
The potential credit losses will by pessimistic calculations lower the aggregate capital adequacy ratio at European banks by about 150 bps.IMF’s Global Financial Stability Report precisely brings out the fact that domestic banks in Eastern Europe have built large negative net foreign positions as credit growth has outpaced domestic deposits. Given the size of bank losses and disruptions in bank funding and securitisation markets, Europe certainly seems to be at a greater risk. It is not only UK or Eastern Europe, which is witnessing renewed symptoms of the crisis. Italy’s economy has started shrinking, its GDP went down by 0.3% quarter-on-quarter in April-June 2008. German economy too shrank by 0.5% during the same period. Moreover, the whole Euro zone economy shrank 0.2% during Q2 2008....Continue
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
Read also :-
Labels: ARINDAM CHAUDHURI, BBA, FOR WORKING, IIIPM, IIPM INTERNATIONAL, India, MALAY CHAUDHURI, MBA, ONE YEAR, SAKET, SATBARI, TWO YEAR
