Funds pulled around the globe
(30 January 2012 – Australia) Australian banks have aggressively cut exposure to European funds, pulling from Belgium, France and Spain.
Europe’s banks have also cut more than US$8 billion (A$7.8 billion) worth of loans from the Australian economy.
Figures released last week from the Swiss-based Bank of International Settlement shows Australian banks increased their exposure to Italy by more than US$700 million in the September quarter.
Funds were also being shifted to Switzerland, which is not a member of the euro zone.
The most dramatic change has been with private and public debt in Spain, where Australian-bank exposure was cut to $US212 million at the end of September from a little over US$1 billion in the June quarter.
Australian banks cut their exposure to Portugal entirely during the second half of last year. And since the end of 2009, they have had no direct exposure to Greece.
Exposure to France fell slightly to US$11.6 billion at the end of September from US$11.7 billion three months earlier. Lending to Belgium, home to troubled bank Dexia, was cut by more than US$330 million.
Separate figures from the bank regulator, the Australian Prudential Regulation Authority, showed France's BNP Paribas shaved A$855 million from its direct lending book here over the past year. Societe Generale trimmed more than A$260 million in loans.
The APRA figures do not include syndicated loans.
Figures released last week from the Swiss-based Bank of International Settlement shows Australian banks increased their exposure to Italy by more than US$700 million in the September quarter.
Funds were also being shifted to Switzerland, which is not a member of the euro zone.
The most dramatic change has been with private and public debt in Spain, where Australian-bank exposure was cut to $US212 million at the end of September from a little over US$1 billion in the June quarter.
Australian banks cut their exposure to Portugal entirely during the second half of last year. And since the end of 2009, they have had no direct exposure to Greece.
Exposure to France fell slightly to US$11.6 billion at the end of September from US$11.7 billion three months earlier. Lending to Belgium, home to troubled bank Dexia, was cut by more than US$330 million.
Separate figures from the bank regulator, the Australian Prudential Regulation Authority, showed France's BNP Paribas shaved A$855 million from its direct lending book here over the past year. Societe Generale trimmed more than A$260 million in loans.
The APRA figures do not include syndicated loans.
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