Britain’s banks cut exposure
(21 November 2011 — United Kingdom) Britain’s big four banks cut interbank loan volumes by more than 24 percent to £10.5 billion (A$16.6 billion) in the three months to September.
As Europe’s debt crisis worsened, the banks shrunk their lending exposure to the peripheral euro zone counterparts.
UK’s big four are HSBC, Lloyds, RBS and Barclays, all of them reduced their volume of loans to Greek and Spanish banks, continuing an earlier pattern.
HSBC, the biggest supplier of credit to other banks, also cut its exposure the most sharply with a 40 percent overall decline in interbank loans to the region.
It eliminated lending to Greek banks, and slashed Spanish and Irish volumes by about two-thirds, according to the data.
With the turmoil growing, euro zone banks are finding it harder to obtain funding. While the stresses are not yet at the levels during the 2008 financial crisis, they have continued to mount despite ECB moves to provide unlimited liquidity to banks.
UK’s big four are HSBC, Lloyds, RBS and Barclays, all of them reduced their volume of loans to Greek and Spanish banks, continuing an earlier pattern.
HSBC, the biggest supplier of credit to other banks, also cut its exposure the most sharply with a 40 percent overall decline in interbank loans to the region.
It eliminated lending to Greek banks, and slashed Spanish and Irish volumes by about two-thirds, according to the data.
With the turmoil growing, euro zone banks are finding it harder to obtain funding. While the stresses are not yet at the levels during the 2008 financial crisis, they have continued to mount despite ECB moves to provide unlimited liquidity to banks.
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