Home > Predictions > A second credit crunch awaits

A second credit crunch awaits

Bankers around the world are on tender-hooks awaiting the announcement of the new Basel III rules on capital adequacy and liquidity.

The Aussie banks are particularly concerned, given their low deposit base relative to their massive lending volumes.  The ‘gap’ is made up from the international wholesale debt markets – and these markets are notoriously volatile and unpredictable.

All I know is that Basel II created a bubble by relaxing the rules and therefore Basel III must create a credit crunch by tightening the rules.


Categories: Predictions
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: