Credit ratings agency Moody's Investor Service said the banking systems in Portugal, Italy, Spain, Ireland and Britain could all be hurt by a widening debt crisis.
With Spain seeing its borrowing costs jump in its latest bond issue — a clear sign of market fear, since investors demand higher rates from borrowers they see as riskier — Europe remained delicately poised at a juncture.
Moody's said much depended on bailout loans agreed for Greece, and whether that was seen as decisive in keeping that country away from bankruptcy. Greece faces a May 19 repayment date and the loan money is expected to get there after approval by national parliaments, but its longer term prospects are less certain.
"A key factor determining whether contagion risk continues in this case will be the market's view of the likely success or otherwise of the recently agreed International Monetary Fund and European Union support package for Greece," Moody's said.
That bailout offers the debt-ridden country €110 billion ($142 billion) in loans over three years from the IMF and the other 15 countries that use the euro.
Source: Associated Press Date: 06.05.2010 [247]
Financial News
Citi gets approval to issue credit cards in China - 06.02.2012 The China unit of Citigroup Inc said on Monday that it has received regulatory approval to issue credit cards in China, the first non-Asian bank to receive permission. Source: Reuters
Three Swiss bankers indicted by U.S. in tax crackdown - 09.01.2012 U.S. authorities are moving toward taking legal action against Wegelin & Co., which could lead to an indictment of one of Switzerland's last pure private banks, on charges that it enabled wealthy Americans to evade taxes, according to two persons with knowledge of the case. Source: Reuters
Islamic finance assets to hit US$ 1.1 trillion in 2012 - 22.11.2011 Islamic finance assets around the world are expected to climb 33% from their 2010 levels to $1.1 trillion by the end of 2012, boosted by the aftermath of the Arab Spring uprisings and dissatisfaction with conventional finance in the wake of the global debt crisis, consultants Ernst & Young said in a report on Tuesday. Source: Reuters
Spanish bank ratings downgraded by Fitch and S&P - 12.10.2011 Two leading credit rating agencies have downgraded some of Spain's largest banks, citing a deteriorating outlook for the Spanish economy. Source: BBC News
Spotlight on Islamic Retail Banking – strategies for fast growing industry - 07.10.2011 Islamic Banking is young but fast growing industry what brings challenges as need for standardization, expanding at the market, lack of public awareness about Islamic Banking (misinterpretation) and limited resources of qualified people in this particular industry. Source: Fleming Gulf
JBIC inks $43bn credit line pact with Japan banks - 05.10.2011 The Japan Bank for International Cooperation (JBIC) said Wednesday that it has signed separate pacts with three major Japanese banks to give them a combined $43 billion, or Y3.3 trillion, credit line, as part of the government's steps to encourage companies to go ahead with M&As overseas. Source: Nikkei
