‘ Minimising Cost of Future Liquidity and Preventing Financial Crisis ‘

#AceFinanceNews – BRUSSELS – September 22 – Implementing the EU response to minimising the public cost of future financial crises and getting banks to offer up loans top the agenda this WEEK it was reproted by EUobserver.  

European Central Bank (ECB) chief Mario Draghi on Monday (22 September) is set to debate the so-called targeted longer-term refinancing operations (TLTROs) with MEPs in the committee on economic affairs.

The idea is to improve bank lending to the eurozone by offering banks extra liquidity at a fixed rate for up to four years.

But the scheme attracted just €82.6bn (out of the €400bn on offer) of interest from banks this month.

Draghi had earlier this month surprised analysts by slashing interest rates to a historic low in an effort to stimulate lending.

The ECB cut is part of a larger attempt by EU policy makers to kick start member states’ overall sluggish economies and put millions of unemployed back to work.

But with the prospect of possibly having to fend off another financial crisis, lawmakers also tasked the ECB to oversee the financial health of around 130 banks with the power to shut them down.

Also known as the single supervisory mechanism, the newly endowed ECB oversight of banks is part of the single resolution mechanism (SRM), which aims to minimize bank bailout costs to taxpayers.

SOURCE:

#AFN2014

#banks, #brussels, #ecb, #european-central-bank, #eurozone, #financial-crisis, #liquidity, #mario-draghi

` China's Developers are Verging on the brink of Bankruptcy as they borrowed Heavily at High Interest Rates '

#AceFinanceNews – CHINA – April 03 – Many of China’s Estate Developers are verging on the Brink of bankruptcy, as many borrowed heavily at high interest rates. The fact that borrowing at the time was plentiful the risk was a lot greater and now they many estates remain empty.

Though interest payments remain high and still require servicing.

Government Official Analysis has shown that the following indicators apply to this situation.

  1. Some of the second and third tier cities housing prices under pressure, as still remaining empty.
  2. Analysts expect more regional small developers will go bankrupt, as the city dwellers are reticent given the present worldwide situation.

The fact that prices still remain high will lead to the decline in building projects as more banks that are risk avert, tighten criteria of their lending.

The real outcome in the long run will be that over priced estates, will remain vacant. Whilst cash-strapped developers still have to either go bankrupt or are forced into liquidation by the banks.

Ace News Services 2014
IKD/ANS/2014
http://acenewsservices.com/

#ans2014, #banks, #building, #china, #chinas, #city, #developers, #dwellers, #high-interest-rates, #ikdans2014, #projects

EU Negotiator’s First Steps To Bank Supervision

Under the deal, if the board of the ECB decides to reject a decision by the new supervisor, the parliament chief and the head of the relevant parliamentary committee will have to be informed in confidence.

The head of the bank supervisor will be appointed by member states and the European Parliament and they will both have the power to recall that person from the job.http://euobserver.com/economic/121382

#acefinancenews, #banks, #ecb, #european-parliament