Banks shift funds out of US to Europe
Banks transferred funds out of the United States and into Europe in the first three months of 2008 as they turned to safer assets amid the global credit crunch, the Bank for International Settlements said.
“In the first quarter of 2008, reporting banks continued their net transfer of funds out of the United States, a trend evident since the onset of the financial turmoil in mid-2007,” the Swiss-based BIS said in its quarterly review of financial markets and banking activity, published on Monday.
It said European banks had cut dollar loans booked by their US offices, resulting in a net outflow from those offices of $259 billion during the first quarter of year, following a net outflow of $238 billion during the second half of 2007.
The BIS said banks stepped up their holdings in public sector debt, while their outstanding debt securities claims in the non-bank sector fell for the first time since 2001.
“This fall in debt securities claims seemed to coincide with a broader shift in bank balance sheets away from the U.S. non-bank private sector, at least for some banking systems,” it said. (Reuters)
ADVERTISEMENT
OECD Forecasts Flat GDP for Hungary in 2023
Parl't Approves Amendments to Legislation on Judiciary
Dana to Invest HUF 36 bln in Capacity Expansion in Hungary
Ibis Styles Budapest Airport Hotel Wins Best of Budapest & H...
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
