Financial Times (June 24)
“It is too early to say, but with the credit intensity of China’s slowing economic growth surging back this year to levels last seen in the 2009 credit boom, a severe credit squeeze could precipitate a big drop in investment, accentuate the downturn in growth and lead to financial and banking sector instability.”
Tags: Banking, Boom, China, Credit, Downturn, Economic growth, Instability, Investment, Squeeze
The Economist (July 7)
The latest banking scandal may have been a tipping point in the court of public opinion. “The attempts to rig LIBOR (the London inter-bank offered rate), a benchmark interest rate, not only betray a culture of casual dishonesty; they set the stage for lawsuits and more regulation right the way round the globe. This could well be global finance’s “tobacco moment”.
The latest banking scandal may have been a tipping point in the court of public opinion. “The attempts to rig LIBOR (the London inter-bank offered rate), a benchmark interest rate, not only betray a culture of casual dishonesty; they set the stage for lawsuits and more regulation right the way round the globe. This could well be global finance’s “tobacco moment”.
Tags: Banking, Global finance, LIBOR, Regulation, Scandal, UK
Economist (September 16)
Since the economic crisis began, “it is remarkable how little has changed” in banking. A new set of rules, Basel 3, aims to bring greater order to the banking sector. As one example, the tier 1 capital ratio will rise to 7%, providing banks with greater ability to survive the next crisis and recover from bad debts. The phase-in sets a final deadline of 2019. While critics say this is too slow, the Economist writes that all in all, “the new Basel rules make sense.”
Tags: Banking, Basel 3, Econoic crisis
