Unparalleled levels of imprudent lending; corrupt banking practices; soaring inflation and rising unemployment; government bank bailouts and an economy dependent on increasing levels of debt to sustain growth. Sound familiar? It would have done to Briton’s in the 1830s.
Greece would not have been able to borrow if European banks had not been willing to lend. The ECB cautions about profligate borrowing by sovereigns. But what about profligate lending by banks?
Three years on from the beginning of the credit crunch, banks are still squeezing small businesses in order to bolster their own financial position. And according to the Bank,this is having a detrimental effect on the economy.
Is a bank making big money a good thing or a bad thing? It is a good thing if it means they’re repairing their balance sheets and financial health, but can be bad for the wider economy if they are doing so at the expense of lending to hard-pressed customers.
That, broadly, is what has been [...]
Markets don’t like surprises, and we know so much about the stress tests – through leaks – that the markets ought not be surprised about who passes, who fails and who scrapes by.
The fact is that most of Europe’s big banking groups are surprisingly well capitalised, both because they have managed to raise funds themselves, [...]
Latest from Independent journalists on Twitter