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sexta-feira, julho 15, 2011

Eurozone debt crisis - now in song

You think it can't happen to you?
British banks were only the second largest "loose lenders", after the German banks, as show in the statistics on Eurozone debt exposure by "bank home country".  In fact, British bank exposure to the peripheral countries is larger in relation to its GDP that of German banks.  Even French banks were more cautious.

The excessive exposure to the fragile peripheral economies reflects on the quality of the "home rule" prudential regulation of each of the Central Banks who could have curbed excessive cross-border lending.