European Debt Crisis: When Banks Become More Countries Restores economic collapse in Ireland drafting rules for a way to assess the organizers and international Citidel APP Review investors to the extent of power of the state economies and banking systems, while more likely to exacerbate the problems of Europe and persistence for a longer time than expected.
Behind this change is a growing recognition that the financial obligations of major banks, the state has become, in fact, the financial obligations of the State itself, especially in Europe, where it is the States usually a bank by the systems are few and linked to the world and its obligations companies greatly exceed their host country’s economy.
And it intensified the feeling of these risks in Ireland, where the large investment and borrowing on the part of a number of companies the government was forced to one of two options: either to let its financial Citidel Investment APP Scam system collapsed during the 2008 crisis, or to issue a comprehensive guarantee is supported by the Irish State.
The government has adopted the latter option, but was troubled banks costs and bad debt great, so it became necessary for the State to resort to the IMF and the European Union Fund, and became Ireland a clear example of a new phenomenon, a banking system on the «very large national level so that can not be salvaged» , and reiterates that the situation in Iceland although not a significant impact on the global economy of the weakness linked to global markets.
When analysts look at the strength of the European countries, they do not look to government debt and spending and the sources of their income, but also look to the debts of its banks locally and globally. Has become the state debt and the debt of banks in Citidel LTD Investment APP Scam , according to the report, some analysts of «Barclays Capital» Bank in November (November).
Hang Tran, deputy director of the Institute of International Capital said: «we had banking crises, and we were suffering from a crisis of sovereign debt, but we currently have a combination of both», he participated Tran in the conduct of a recent study showed that the average financial obligations of systems Banking EU countries is greater than National four times their economies.
Tran adds that in contrast, the ratio in the United States, where he collects the money and are lending through the capital and other channels markets beyond traditional banks, limits, and one to almost one, and shows that while there is no risk inevitability related to the huge banking system if it is well organized and managed sound manner, some Citidel LTD APP Review in many European countries, he adds: «It’s the size of any inflation problem .. We have known that for a very small states to their banking systems, and so they float without a safety net».
This represents one of the causes of tension and the length of the period of negotiations, the European countries on ways to assist them in dealing with troubled economies. Hard to wait for help from Germany, one of the countries with a strong economy, due to increased Greek government to spend heavily on over the years, in light of the political context in which Germany has a saving and saving, while Greece enjoyed their time.
Now seek the support of Germany and other powerful countries to European governments and banks with it, and this represents the biggest financial commitments and the most serious view of the continued closure of some countries in the collapsed banks and consider the health of the other banks.
According to a recent study carried out by «Barclays» Bank, represented banks in Spain and the Netherlands, a major threat to the two governments, while banks formed in the same economy that Citidel LTD Investment APP supports it, such as Britain and small nations states, but important, such as Austria, Belgium, lower risk, although substantially as a result of the accumulation of debt by banks.
European leaders in Brussels this week, and it is an important recognition of the common responsibility, especially among the countries that deal in euros has been agreed on the establishment of a permanent crisis fund to help governments facing problems. But there is no agreement on the heavy burden, which is how the management of the Fund and the parties that will contribute to the terms and conditions that allow benefit from it, in light of sharp divisions.
Among the important issues, you will be asked to private investors to participate in the losses, which insisted upon Germany at a time when governments problems increase as a result of the bad practices of the private banks.
In the meantime, the market offers a simple contribution in respect of trillions of dollars that governments and banks will need to assembled next year in Europe and the United States to finance its operations, experiencing more problems. For example is the large banks in Spain, such as Automated Cash APP Software in a well-alone mode, the Spanish government and has received praise for having a substantial reduction in the budget and reforms in an attempt to control the public debt.
But you will need the banks and the Spanish government to collect $ 100 billion during the first months of the year. When analysts hopes the market, analysts such as «Barclays» Bank of the situation, said that investors do not look only to the risk that surround the writ singular but also to the total risk «within Spain.»
Tran said in a recent research paper that this concern has helped to raise the interest rates that investors from countries such as Spain and Portugal demanded more than the required interest rates from emerging markets rates, which the so-called Tran «unprecedented development».
International Monetary Fund or any other party any proposal to impose states did not provide limits on the size of the banking sector, a step that would be shocking for with huge financial sectors, such as Britain, Switzerland and countries. Says Ajay Chopra, president of the Irish mission to the International Monetary Fund, said that in the framework of the European rescue plan and the International Monetary Fund Ireland re-structuring of its banks to go out smaller banking system, but generally «There is no magical number.»
For example, a study conducted by the International Monetary Fund in the spring showed that the banking sector in Singapore and Hong Kong larger than their economies with six and eight times, however, the two countries could pass the crisis, thanks to the after strong government oversight and management to maintain large financial sums invested in the part of the world It is growing rapidly.
Switzerland has taken, its banking sector, which more than seven times the size of its economy, quick steps to address the problems faced by the «UPS» the World Bank’s huge real estate investments in the United States. Recently it announced that it was tougher than other countries concerning the capital to ensure the stability of its standards.
And pay the International Monetary Fund towards reaching an international treaty or other mechanism, through which the internationalization of costs in the case of the collapse of a major bank in a small country. This idea, known as «cross-border decision» is a difficult and politically, but they will recognize the nature of the modern banking system.
He said the International Monetary Fund, saying: «reduce any means a transparent and conducive to the collapse of a smooth and planned international banks with costs related to the ethical risk-sharing, and promote the system in the market», in reference to the possibility of the failure of the major banks in small countries by ensuring their procedures because they assume that It will be salvaged, but «there is an understanding and recognition of the obstacles that prevent a solution at the global level or even regional».