China Banks | InvestmentWatch

Spanish Bank ECB Borrowing Hits New High; Currency Flows Reversing China to Colombia as Trade Slows

MADRID–Spanish banks’ level of borrowing from the European Central Bank rose to a record high in July as tensions mounted in the weeks following the announcement of a 100 billion euro ($122 billion) bailout for the country’s financial industry.

Data released Tuesday by the Bank of Spain showed that net borrowing rose to EUR375.55 billion, up from EUR337.21 billion in June. It was the tenth month in a row [...]

China banks took almost a third of 2011 global profit – study

(Reuters) – Chinese lenders accounted for almost a third of global bank profit last year, up from 4 percent in 2007, as they grabbed market share given up by struggling European peers, according to The Banker magazine’s annual rankings.

Three Chinese banks topped the profit table, led by Industrial and Commercial Bank of China (ICBC) (601398.SS) for the second successive year, with pretax earnings of $43.2 billion, according to The Banker.

ICBC was followed [...]

China Banks Postponing Losses Damages Confidence, S&P Says

Just a few headlines:

China Banks Postponing Losses Damages Confidence, S&P Says
Gross Says Next U.S. Quantitative Easing May Be $500 Billion
Moody’s cuts Region of Valencia to Ba3
Debt Downgrades to Rise ‘Substantially’ in 2012, Moody’s Says
San Francisco’s tab for public pensions may jump to $80M
Greek bond swap falling short – sources

China banks offer ‘creative’ lifeline

Small banks in the mainland are resorting to “creative” but high-risk ways to structure loans, sources said.
Some are extending a single loan to several companies while others are handing out personal loans to executives that are then channeled into business operations.

Sources said that when a loan is spread among several companies, a bank is also at risk of a default.

“The companies may have been struggling and that’s why [...]

Inevitable Catastrophe: The Fruits Of Moral Hazard On A Global Scale

Insulate participants from risk with policies like the “Bernanke Put” and you guarantee destruction of both the market and institutional legitimacy.Identify the common characteristic of these three statements:

1. The Federal Reserve will never let the stock market decline, i.e. the “Bernanke put.”

2. The Chinese government will never let property prices decline.

3. The European Central Bank will never let Greece default.

The answer of course is moral hazard: a person [...]

Inevitable Catastrophe: The Fruits Of Moral Hazard On A Global Scale

by Charles Hugh Smith from Of Two Minds

Inevitable Catastrophe: The Fruits Of Moral Hazard On A Global Scale

Insulate participants from risk with policies like the Bernanke Put and you guarantee destruction of both the market and institutional legitimacy.

Identify the common characteristic of these three statements:

1. The Federal Reserve will never let the stock market decline, i.e. the “Bernanke put”

2. The Chinese government will never let property prices [...]

Denninger nails it: It's all about the debt.

Pretty amazing when you see something intelligent out of China – that we, and the rest of the so-called “Western World”, refuse to do:

The assets linked to wealth management products provided by trust companies must be shifted onto banksâ€™ balance sheets by the end of 2011, the people said, declining to be identified as the matter isnâ€™t public. Lenders should prepare provisions equal to 150 percent [...]

Why china bank have to keep lending. if they stop to lend, they die.

now years after accession to WTO, the very few profitable business in China are: western firms JV, monopoly such as oil, china mobile. very few local manufacturer are making money in china, according to latest survey , 70% percent of top 100 private firms in zhejiang province are in real estate business, real estate business now are the life support of china gov, domestic manufacturer, resident. 80% of china financial [...]

InvestmentWatch

Spanish Bank ECB Borrowing Hits New High; Currency Flows Reversing China to Colombia as Trade Slows

China Banks Postponing Losses Damages Confidence, S&P Says

China banks offer ‘creative’ lifeline

Inevitable Catastrophe: The Fruits Of Moral Hazard On A Global Scale

Inevitable Catastrophe: The Fruits Of Moral Hazard On A Global Scale

Denninger nails it: It's all about the debt.

Why china bank have to keep lending. if they stop to lend, they die.

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