News Column

The Dark And Bright Sides Of Global Banking

August 13, 2014



LONDON, Aug. 13 -- The European Union'sEuropean Bank for Reconstruction and Development issued the following news release:

This EBRD working paper by Ralph De Haas reviews the literature on the benefits and risks of global banking, with a focus on emerging Europe. It argues that while the potential destabilising impact of global banks was well understood before the 2008-09 financial crisis, the sheer magnitude of this impact in the case of systemically relevant foreign bank subsidiaries was under-appreciated.

A second lesson from the crisis is that banks' funding structure, in particular the use of short-term wholesale funding, matters as much for lending stability as does their ownership structure.

Read the Working paper in full (715KB - PDF) http://www.ebrd.com/english/downloads/research/economics/workingpapers/wp0170.pdf

TNS 30FurigayJane-140814-4827862 30FurigayJane


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Targeted News Service


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters