Transaction Banking: Respecting its role in the real economy
This paper sketches the main features and issues related to recent market developments in global transaction banking (GTB), particularly in trade finance, cash management and correspondent banking. It describes the basic functioning of the GTB, its interaction with global financial markets and related implications of global regulatory developments such as Basel III. The interest in […]
Household Debt and the European Crisis
The fall in economic output all over Europe since 2008 has had important consequences for household liabilities. Major growth in demand and supply for household credit products has generated an increase in household debt, which contributed to growth rates during the pre-crisis period but – in some countries – became household-debt overhangs and helped inflate […]
Collateral and Credit Rationing: The role of collateral in explaining and remediating the limited flow of credit to households and SMEs
European-wide data concerning both companies and households indicate that the credit rationing phenomenon, which has been predicted by theory, does in fact occur to a significant degree in the European credit market. Among SMEs, micro companies are most vulnerable and the current economic crisis has only made these concerns more pressing. Top-down use of the […]
Household Debt in Europe’s Periphery: The dangers of a prolonged recession
The second-dip recession in Europe’s periphery has created a poisonous mix, which risks threatening further the financial system and the economy. Against this background, this ECRI Commentary argues that time matters in the household deleveraging cycle and that a swift recovery is one of its most vital parts. The paper also assesses the extent to […]
Banking and Insurance in the GCC Countries: Is there Regulatory Convergence with the EU?
The financial services sector plays a pivotal role in the quest of the GCC countries to diversify their economies. While the sector is dominated by commercial banks that provide traditional banking services, non-bank financial institutions, insurance and capital markets are still underdeveloped, albeit with significant differences between the individual countries. Despite efforts to revise the […]