Page 38 - BANKING FINANCE November 2018

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the acce tance o de osits and loans an here in a currenc recei ed ia su ri e crisis or e a le the uro dollar
other than that o the countr in hich the ank is located arket also lets anks adjust their o erall li uidit osition
in oth do estic and oreign currencies ank s constituents
hough the ost talked a out international anks are are o ered or ard e change ositions ithout the anks
located in S it erland et a nu er o countries ha e ull the sel es incurring an undesired o en or ard osition
de elo ed international anking in rastructures Man asel journe a good going
indi iduals and co anies artici ate in international
anking to ini i e or e ade their ta lia ilit his o in C u o u o e oo e
strateg has certain disad antages n addition se eral Deteriorating ank ro ita ilit is a co on heno enon
international organi ations ha e ade recent e orts to cur in ost ad anced econo ies as the rolonged ultra loose
the use o international anks as ta ha ens onetar olic has s uee ed net interest argins

o e er a glo al anking sector oses glo al risks anks he o o ser es rightl that the lo ro ita ilit o
can o erate internationall and set u their o erations in a anese anks is striking ro an international
ers ecti e
di erent countries or arious reasons ut risks re ain
here the anking usiness is
Declining trends in long ter interest rates ha e een a
aturall e ecti e easures ha e to acco an the trend glo al heno enon that has een o ser ed in an
o glo al e ansion s in the case o other or s o inancial ad anced econo ies including a an the S and uro e
inter ediation international anking is also in ol ed in since the s Major central anks increasingl ha e een
aturit trans or ation this rocess has een eased ith a ing attention to these o e ents es eciall a ter the
roll o er credits here s ndicated loan a e inanced glo al inancial crisis hich in turn re lects their concerns
anks orro ing one ith a si onth aturit he a out declining otential econo ic gro th long run
interest rate risk here in such a aturit is atch is gro th ros ects and eaker than e ected in lation
trans erred ro the ank to the orro er his is ased on er or ance
the ractice here interest rate is reset e er si onths
on the asis o interest rate aid the ank R on si ious enough the inancial s ste in uro e is igger
onth one no relati e to its D than e ore the crisis t is also ore
concentrated lus non anks la a igger role in it
Still s eci ic attention is to e continued to ensure that the ccording to the uro ean Central ank hile ca ital ratios
risks like so ereign risk risk arising out o a di ersi ied ha e increased non er or ing loans re ain high in ke
ort olio held an inter ediar a ong others are e er states ha ering reco er in the region s
anaged eri her li iting credit gro th and utting inancial
sta ilit in jeo ard Sil er lining econo ic gro th is icking
nternational anks are ca a le o tackling the risks o u in these econo ies
course in a etter anner es eciall a ter the shock
ortugal has een gro ing a o e the euro one a erage
thanks to stronger e orts he central ank e ects D
to e and ercent in u ro ercent in
his rate is e ected to e ercent higher than
the euro one a erage orts are redicted to out er or
consu tion and in est ent in oosting the econo he
should e and ercent in the central ank sa s
u ro ercent in

ot to lose sight o e en in de elo ed econo ies the
uestion o o er anking is co ing u he ank o a an has

Co

8 | 2018 | NOVEMBER | B N N N N E