European Bank Deleveraging and Global Credit Conditions : Implications of a Multi-Year Process on Long-Term Finance and Beyond

Feyen, Erik ; Gonzá ; lez del Mazo, Iné ; s

World Bank, Washington, DC

关键词: ACCOUNTING;    ADVANCED ECONOMIES;    AFFILIATES;    AMOUNT OF CAPITAL;    APR;   

DOI  :  10.1596/1813-9450-6388
RP-ID  :  WPS6388

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper assesses European bankdeleveraging and its impact on global credit conditions.Before the onset of the global financial crisis, Europeanbanks had rapidly expanded their foreign lending activities.However, European banks have since been tightening creditconditions in Europe more for longer-term lending, a trendthat banks expect to continue. European financial stress hasbeen transmitted to emerging markets that have experienced asustained deterioration of credit standards and fundingconditions. As a result, European lending in emergingmarkets has been lagging behind lending of otherinternational banks although European banks remain adominant source of funding. "Good" bankdeleveraging is still necessary from a prudentialperspective. Although acute "bad" deleveragingpressures due to financial stress, which can trigger acredit crunch, have subsided recently on account of decisivepolicy measures, tail risks remain. Curtailing lending willprobably be a core component of this multi-year deleveragingprocess. Taken together, European bank deleveraging warrantsclose attention.