Business

EU banks pulled billions from Aus

THINKSTOCK

EUROPE'S troubled banks accelerated efforts to pull loans from countries around the world, including Australia, towards the end of last year as the euro zone debt crisis intensified.

Figures released by the Bank for International Settlements in Switzerland show Europe's banks cut more than $US8 billion ($7.56 billion) worth from the Australian economy as they began feeling the funding squeeze at home.

During the second half of last year, most European banks began selling down their international loan portfolio or simply turning off the lending tap, the BIS said.
Advertisement: Story continues below

This coincided with a period in which many large Australian companies were attempting to refinance loans they had locked in during the global financial crisis.

''Pressures on European banks to deleverage increased towards the end of 2011 as funding strains intensified and regulators imposed new [capital] targets,'' the BIS said in its March quarterly review, released this morning. However, the report found it was largely an orderly exit by European banks and other global banks and bond markets were able to step in to replace financing. This helped Australian businesses avoid a credit squeeze.

Read more at Brisbanetimes.com.au
 

Topics:  banks, contagion, economy, europe, eurozone, sovereign debt crisis


Join the Community.

Get your local news, your way.

Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Fiance pays tribute to ‘gentle soul’

Scott Elliot died at Double Island Point in April. His fiance describes him as a "gentle soul" and "child of the sea".

Logan Central man dies while spear fishing.

When will this treatment end?

Australia needs a strong leader to stand up and say enough is enough

Small business gears up to take on Bunnings

COMPETITIVE: Ian Gill, owner of Mitre 10 Loganholme wants locals to get behind small business.

Bunnings headed to Loganholme.

Latest deals and offers

Fire support group needs your help

Bad publicity has seen donations to group drop off.

Fiance pays tribute to ‘gentle soul’

Scott Elliot died at Double Island Point in April. His fiance describes him as a "gentle soul" and "child of the sea".

Logan Central man dies while spear fishing.

When will this treatment end?

Australia needs a strong leader to stand up and say enough is enough

Small business gears up to take on Bunnings

COMPETITIVE: Ian Gill, owner of Mitre 10 Loganholme wants locals to get behind small business.

Bunnings headed to Loganholme.

Hospital launches new volunteer program

Margaret, Pat, Vicky (volunteer), Jim, Kirsty (volunteer), Trevor (volunteer). Back Row L-R: Yasmeen Lal (Occupational Therpist, Mick Tilley (allied Health Assistant), Catherine Triandafyllou (Allied Health Assistant) and Hospital Nursing and Midwifery Director Jacquie Smith.

Call out for hospital volunteers.

Tourist attraction just down the road

Pelican feeding every day at Labrador.

Federal Police Defuse Dance Bomb

Australian Federal Police respond to "threat" in Canberra.

Australian Federal Police respond to "threat" in Canberra.

NSW Police join Dance Challenge

NSW Police show their moves at Manly Wharf.

Manly Wharf is the backdrop to NSW Police running-man dance entry.

Scotland Police accept Dance Challenge

NZ Police doing the running man dance.

Australian Federal Police say watch this space but NT Police feel ignored.

Demand for acreage lots pushes up property prices

Property values in Cooroy have increased 25%

Property values jump in Cooroy and Peachester.

How a sacked real estate agent made $725k in four months

Agent is now under investigation by the industry watchdog

RBA warns of future apartment oversupply

Toowoomba: Crest Apartments and Burke & Wills, Ruthven Street ( view from Neil Street) Photo Bev Lacey / The Chronicle

RBA says oversupply of apartments poses risk to household finances