雅思閱讀:The screw tightens

雕龍文庫 分享 時間: 收藏本文

雅思閱讀:The screw tightens

  雅思閱讀:The screw tightens

  ONE can almost hear the gates clanging: one after the other the sources of funding for Europes banks are being shut. It is a result of the highly visible run on Europes government bond markets, which today reached the heart of the euro zone: an auction of new German bonds failed to generate enough demand for the full amount, causing a drop in bond prices .

  Now another runmore hidden, but potentially more dangerousis taking place: on the continents banks. People are not yet queuing up in front of bank branches . But billions of euros are flooding out of Europes banking system through bond and money markets.

  At best, the result may be a credit crunch that leaves businesses unable to get loans and invest. At worst, some banks may failand trigger real bank runs in countries whose shaky public finances have left them ill equipped to prop up their financial institutions.

  To make loans, banks need funding. For this, they mainly tap into three sources: long-term bonds, deposits from consumers, and short-term loans from money markets as well as other banks. Bond issues and short-term funding have been seizing up as the panic over government bonds has spread to banks . This blockage has been made worse by tighter capital regulations that are encouraging banks to cut lending .

  Markets for bank bonds were the first to freeze. In the third quarter bonds issues by European banks only reached 15% of the amount they raised over the same period in the past two years, reckon analysts at Citi Group. It is unlikely that European banks have sold many more bonds since.

  Short-term funding markets were next to dry up. Hardest hit were European banks that need dollars to finance world trade . American money market funds, in particular, have pulled back from Europe. Loans to French banks have plunged 69% since the end of May and nearly 20% over the past month alone, according to Fitch, a ratings agency. Over the past six months, it reckons, American money market funds have pulled 42% of their money out of European banks. European money market funds, too, continue to reduce their exposure to France, Italy and Spain, according to the latest numbers from Fitch.

  Interbank markets, in which banks lend to one another, are now also showing signs of severe strain. Banks based in London are paying the highest rate on three month loans since 2009 . Banks are also depositing cash with the ECB for a paltry, but risk-free rate instead of making loans.

  That leaves retail and commercial deposits, and even these may have begun to slip away. We are starting to witness signs that corporates are withdrawing deposits from banks in Spain, Italy, France and Belgium, an anlayst at Citi Group wrote in a recent report. This is a worrying development.

  With funding ever harder to come by, banks are resorting to the financial industrys equivalent of a pawn broker: parking assets on repo markets or at the central bank to get cash. We have no alternative to deposits and the ECB, says a senior executive at one European bank.

  So far the liquidity of the European Central Bank has kept the system alive. Only one large European bank, Dexia, has collapsed because of a funding shortage. Yet what happens if banks run out of collateral to borrow against? Some already seem to scrape the barrel. The boss of UniCredit, an Italian bank, has reportedly asked the ECB to accept a broader range of collateral. And an increasing number of banks are said to conduct what is known as liquidity swaps: banks borrow an asset that the ECB accepts as collateral from an insurer or a hedge fund in return for an ineligible assetplus, of course, a hefty fee.

  The risk of all this is two-fold. For one, banks could stop supplying credit. To some extent, this is already happening. Earlier this week Austrias central bank instructed the countrys banks to limit cross-border lending. And some European banks are not just selling foreign assets to meet capital requirements, but have withdrawn entirely from some markets, such as trade finance and aircraft leasing.

  Secondly and more dangerously, as banks are pushed ever closer to their funding limits, one or more may failsparking a wider panic. Most bankers think that the ECB would not allow a large bank to fail. But the collapse of Dexia in October after it ran out of cash suggests that the ECB may not provide unlimited liquidity. The falling domino could also be a shadow bank that cannot borrow from the ECB.

  Europes leaders are certainly aware of the dangersand are working on solutions. But it would not be the first time that their efforts are overtaken by events.

  

  雅思閱讀:The screw tightens

  ONE can almost hear the gates clanging: one after the other the sources of funding for Europes banks are being shut. It is a result of the highly visible run on Europes government bond markets, which today reached the heart of the euro zone: an auction of new German bonds failed to generate enough demand for the full amount, causing a drop in bond prices .

  Now another runmore hidden, but potentially more dangerousis taking place: on the continents banks. People are not yet queuing up in front of bank branches . But billions of euros are flooding out of Europes banking system through bond and money markets.

  At best, the result may be a credit crunch that leaves businesses unable to get loans and invest. At worst, some banks may failand trigger real bank runs in countries whose shaky public finances have left them ill equipped to prop up their financial institutions.

  To make loans, banks need funding. For this, they mainly tap into three sources: long-term bonds, deposits from consumers, and short-term loans from money markets as well as other banks. Bond issues and short-term funding have been seizing up as the panic over government bonds has spread to banks . This blockage has been made worse by tighter capital regulations that are encouraging banks to cut lending .

  Markets for bank bonds were the first to freeze. In the third quarter bonds issues by European banks only reached 15% of the amount they raised over the same period in the past two years, reckon analysts at Citi Group. It is unlikely that European banks have sold many more bonds since.

  Short-term funding markets were next to dry up. Hardest hit were European banks that need dollars to finance world trade . American money market funds, in particular, have pulled back from Europe. Loans to French banks have plunged 69% since the end of May and nearly 20% over the past month alone, according to Fitch, a ratings agency. Over the past six months, it reckons, American money market funds have pulled 42% of their money out of European banks. European money market funds, too, continue to reduce their exposure to France, Italy and Spain, according to the latest numbers from Fitch.

  Interbank markets, in which banks lend to one another, are now also showing signs of severe strain. Banks based in London are paying the highest rate on three month loans since 2009 . Banks are also depositing cash with the ECB for a paltry, but risk-free rate instead of making loans.

  That leaves retail and commercial deposits, and even these may have begun to slip away. We are starting to witness signs that corporates are withdrawing deposits from banks in Spain, Italy, France and Belgium, an anlayst at Citi Group wrote in a recent report. This is a worrying development.

  With funding ever harder to come by, banks are resorting to the financial industrys equivalent of a pawn broker: parking assets on repo markets or at the central bank to get cash. We have no alternative to deposits and the ECB, says a senior executive at one European bank.

  So far the liquidity of the European Central Bank has kept the system alive. Only one large European bank, Dexia, has collapsed because of a funding shortage. Yet what happens if banks run out of collateral to borrow against? Some already seem to scrape the barrel. The boss of UniCredit, an Italian bank, has reportedly asked the ECB to accept a broader range of collateral. And an increasing number of banks are said to conduct what is known as liquidity swaps: banks borrow an asset that the ECB accepts as collateral from an insurer or a hedge fund in return for an ineligible assetplus, of course, a hefty fee.

  The risk of all this is two-fold. For one, banks could stop supplying credit. To some extent, this is already happening. Earlier this week Austrias central bank instructed the countrys banks to limit cross-border lending. And some European banks are not just selling foreign assets to meet capital requirements, but have withdrawn entirely from some markets, such as trade finance and aircraft leasing.

  Secondly and more dangerously, as banks are pushed ever closer to their funding limits, one or more may failsparking a wider panic. Most bankers think that the ECB would not allow a large bank to fail. But the collapse of Dexia in October after it ran out of cash suggests that the ECB may not provide unlimited liquidity. The falling domino could also be a shadow bank that cannot borrow from the ECB.

  Europes leaders are certainly aware of the dangersand are working on solutions. But it would not be the first time that their efforts are overtaken by events.

  

信息流廣告 周易 易經 代理招生 二手車 網絡營銷 旅游攻略 非物質文化遺產 查字典 社區團購 精雕圖 戲曲下載 抖音代運營 易學網 互聯網資訊 成語 成語故事 詩詞 工商注冊 注冊公司 抖音帶貨 云南旅游網 網絡游戲 代理記賬 短視頻運營 在線題庫 國學網 知識產權 抖音運營 雕龍客 雕塑 奇石 散文 自學教程 常用文書 河北生活網 好書推薦 游戲攻略 心理測試 石家莊人才網 考研真題 漢語知識 心理咨詢 手游安卓版下載 興趣愛好 網絡知識 十大品牌排行榜 商標交易 單機游戲下載 短視頻代運營 寶寶起名 范文網 電商設計 免費發布信息 服裝服飾 律師咨詢 搜救犬 Chat GPT中文版 經典范文 優質范文 工作總結 二手車估價 實用范文 古詩詞 衡水人才網 石家莊點痣 養花 名酒回收 石家莊代理記賬 女士發型 搜搜作文 石家莊人才網 鋼琴入門指法教程 詞典 圍棋 chatGPT 讀后感 玄機派 企業服務 法律咨詢 chatGPT國內版 chatGPT官網 勵志名言 河北代理記賬公司 文玩 語料庫 游戲推薦 男士發型 高考作文 PS修圖 兒童文學 買車咨詢 工作計劃 禮品廠 舟舟培訓 IT教程 手機游戲推薦排行榜 暖通,電地暖, 女性健康 苗木供應 ps素材庫 短視頻培訓 優秀個人博客 包裝網 創業賺錢 養生 民間借貸律師 綠色軟件 安卓手機游戲 手機軟件下載 手機游戲下載 單機游戲大全 免費軟件下載 石家莊論壇 網賺 手游下載 游戲盒子 職業培訓 資格考試 成語大全 英語培訓 藝術培訓 少兒培訓 苗木網 雕塑網 好玩的手機游戲推薦 漢語詞典 中國機械網 美文欣賞 紅樓夢 道德經 標準件 電地暖 網站轉讓 鮮花 書包網 英語培訓機構 電商運營
主站蜘蛛池模板: 老司机成人精品视频lsj| 一级做a爰性色毛片免费| 精品国产麻豆免费人成网站| 天天躁日日躁狠狠躁av麻豆| 亚洲欧美另类精品久久久| 香蕉久久夜色精品国产尤物| 成人乱码一区二区三区AV| 免费无码国产V片在线观看| 18禁止看的免费污网站| 日本漂亮人妖megumi| 内射老妇BBWX0C0CK| 2019天天操天天干天天透| 日本污全彩肉肉无遮挡彩色| 十八在线观观看免费视频| 91理论片午午伦夜理片久久| 日韩免费观看一级毛片看看| 内射中出日韩无国产剧情| 538在线视频观看| 日日碰狠狠添天天爽不卡| 免费国产一级特黄久久| 91欧美在线视频| 小宝极品内射国产在线| 亚洲丶国产丶欧美一区二区三区| 美女巨胸喷奶水视频www免费| 国产精品色拉拉免费看| 中文字幕手机在线免费看电影| 欧美日韩视频在线第一区 | 国产激情电影综合在线看| 东京一本一道一二三区| 欧美在线综合视频| 午夜一区二区免费视频| 亚洲va欧美va| 天堂网在线资源www最新版| 久久人人爽人人爽人人片av不 | 欧美性猛交XXXX乱大交3| 厨房切底征服岳| 欧式午夜理伦三级在线观看| 天天躁日日躁aaaaxxxx| 久久国产乱子伦免费精品| 欧美高清video| 午夜影放免费观看|