Less Available Credit From European Banks
 

Less Available Credit From European Banks

on

  • 432 views

http://www.profitableinvestingtips.com/investing-trading/less-available-credit-from-european-banks ...

http://www.profitableinvestingtips.com/investing-trading/less-available-credit-from-european-banks

Less Available Credit From European Banks

As self-imposed austerity measures drive the Euro Zone back into recession, economies across the world worry about less available credit from European banks. As the Euro Zone increases its lending limit again the EU is focusing on keeping its own economies afloat. However, the big Euro Zone banks have traditionally had customers all across the world. Clients in Asia, especially, are concerned that a Euro Zone recession will reduce the European demand for Asian exports. A faltering economy in the Euro Zone will further reduce balance sheets and result in less available credit from European banks. Although the combined efforts of the IMF, European Central Bank, and leaders of the EU helped avoid a Greek financial collapse , Spain is now teetering on the brink of disaster and the continent’s third largest economy, Italy, is none too healthy. If worse comes to worst any more low interest rate loans from the European Central Bank to ailing European banks may well come with the stipulation that the money be lent at home and not abroad.
Turning Off Credit to Asia
Will less available credit from European Banks really damage the economies in Asia? After all Japan, Taiwan, and mainland China have large foreign currency reserves. But, there is no clear indication that the national treasuries of these and other Asian nations would open their doors, so to speak, and let borrowers walk right in. When the recession and banking crisis hit in 2008 the effects were devastating to a large number of borrowers across Asia and the Pacific. The large European banks that do business across the world have relationships with their clients and are set up to efficiently lend in time of need. If this source of funds is cut off Asian borrowers might find that they have to pay a political price China comes to the rescue with loans. That is to say less available credit from European banks could upset the balance of influence and power across Asia and the Pacific. Profitable investing in Asia might become more difficult as Chinese influence increases and transparency decreases. Add the risk of a Chinese real estate crash, decreased Asian exports to Europe, and higher oil prices based on Middle East tension and you have a recipe for potential disaster for the combined economies of the Far East.
Long Term Effects of Shutting off Western Credit to Asia
World trade will fall off measurably Europe buys less from Asia. It will also fall off if Asian producers, at least of now, find less available credit from European banks. However, if European banks cease to be major players in Asia, local banks will pick up the slack. This could result in stronger trade among the nations of Asia and less reliance of trade with the West. That would, in fact, be a healthy thing for China, Japan, Taiwan, Australia, and the rest.

Statistics

Views

Total Views
432
Views on SlideShare
432
Embed Views
0

Actions

Likes
0
Downloads
1
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Less Available Credit From European Banks Less Available Credit From European Banks Presentation Transcript

  • Less Available Creditfrom European Banks
  • To see a complete version of thispresentation and to obtain our free EBookfollow this link:http://portal.sliderocket.com/BLOUC/Less-Available-Credit-From-European-BanksRead the Forex Conspiracy Report forinsights into trading foreign currencies. Getyour copy athttp://portal.sliderocket.com/BLOUC/Less-Available-Credit-From-European-Banks
  • As self-imposed austerity measures drivethe Euro Zone back intorecession, economies across the worldworry about less available credit fromEuropean banks.www.ProfitableInvestingTips.com
  • As the Euro Zone increases its lending limitagain the EU is focusing on keeping its owneconomies afloat.However, the big Euro Zone banks havetraditionally had customers all across theworld.www.ProfitableInvestingTips.com
  • Clients in Asia, especially, are concernedthat a Euro Zone recession will not onlyreduce the European demand for Asianexports.A faltering economy in the Euro Zone willfurther reduce balance sheets and result inless available credit from European banks.www.ProfitableInvestingTips.com
  • Although the combined efforts of theIMF, European Central Bank, and leadersof the EU helped avoid a Greek financialcollapse, Spain is now teetering on the brinkof disaster and the continent’s third largesteconomy, Italy, is none too healthy. www.ProfitableInvestingTips.com
  • If worse comes to worst any more lowinterest rate loans from the EuropeanCentral Bank to ailing European banks maywell come with the stipulation that themoney be lent at home and not abroad. www.ProfitableInvestingTips.com
  • Turning Off Credit to Asiawww.ProfitableInvestingTips.com
  • Will less available credit from EuropeanBanks really damage the economies in Asia?After all Japan, Taiwan, and mainland Chinahave large foreign currency reserves. But,there is no clear indication that the nationaltreasuries of these and other Asian nationswould open their doors, so to speak, and letborrowers walk right in. www.ProfitableInvestingTips.com
  • When the recession and banking crisis hitin 2008 the effects were devastating to alarge number of borrowers across Asiaand the Pacific. www.ProfitableInvestingTips.com
  • The large European banks that do businessacross the world have relationships withtheir clients and are set up to efficiently lendin time of need. www.ProfitableInvestingTips.com
  • If this source of funds is cut off Asianborrowers might find that they have topay a political price China comes to therescue with loans. www.ProfitableInvestingTips.com
  • That is to say less available credit fromEuropean banks could upset the balanceof influence and power across Asia andthe Pacific. www.ProfitableInvestingTips.com
  • Profitable investing in Asia might becomemore difficult as Chinese influenceincreases and transparency decreases. www.ProfitableInvestingTips.com
  • Add the risk of a Chinese real estatecrash, decreased Asian exports toEurope, and higher oil prices based onMiddle East tension and you have a recipefor potential disaster for the combinedeconomies of the Far East. www.ProfitableInvestingTips.com
  • Long Term Effects of Shutting off Western Credit to Asia www.ProfitableInvestingTips.com
  • World trade will fall off measurably Europebuys less from Asia.It will also fall off if Asian producers, at leastof now, find less available credit fromEuropean banks. www.ProfitableInvestingTips.com
  • However, if European banks cease to be majorplayers in Asia, local banks will pick up theslack.This could result in stronger trade among thenations of Asia and less reliance of trade withthe West. www.ProfitableInvestingTips.com
  • That would, in fact, be a healthy thing forChina, Japan, Taiwan, Australia, and the rest.Many credit (or blame) the tightening of creditafter 2008 for the fact that China is attemptingto internationalize its currency, the Yuan. www.ProfitableInvestingTips.com
  • If China succeeds in converting the Yuaninto a reserve currency the roles ofEurope and North America in the affairsof Asia could well lessen. www.ProfitableInvestingTips.com
  • However, since banks are in business tomake money it is unlikely that Europeanor North American banks will retreatfrom business in Asia. www.ProfitableInvestingTips.com
  • It will take more than a weak Chinesemanufacturing report or questionable realestate market to keep Western banks frominvesting in the promise of long termAsian growth. www.ProfitableInvestingTips.com
  • For more insights and useful informationregarding investments and investing, visit
  • www.ProfitableInvestingTips.com