Post by account_disabled on Mar 6, 2024 7:06:03 GMT
The dramatic and traumatic global crisis born of lack of control and lack of banking regulation involves matters relating to public finances. Once the credibility of the measures adopted in the euro zone has been overcome, the fact is that in some locations there is an outflow of money from banks.
In reality, when Greece announces that it is unable to pay its debts and needs to be paid, what happens is a serious circumstance that shakes the markets. We have been watching the stock markets fall undaunted for ten days, and the forecast is that we will once again reach , points, which will make half of the investors disappear and US$ trillion in fund losses. The question asked is: when will bank liquidity work, under Basel , in the event of a bottleneck in public finances in Greece and other countries? And what will be its consequences in Brazil?
It is worth highlighting that an international congress will be held in São Paulo from the rd to the th of June whose fundamental concern is to find means and solutions to the impasse. It is undeniable BTC Number Data that without a bankruptcy order from the public body, the presence of millions of credits from funds and banks will sustain the condition of a debt default , this default will spill over to international banks. It has been rumored that the few foreign institutions in the country would be selling their operations to minimize the damage caused by the crisis.
Considering this point of view, in Brazil the issue is the reduction of interest rates and spreads. The current situation dictates preserving liquidity, and the consequent reduction in access to credit is visible. The debt increased in size, registering a greater balance than in the last decade. With this, we are highlighting that the international public debt crisis in Eurozone countries will certainly affect financial institutions more strongly or not. The concentration process will be accentuated, given that the debt and losses incurred will not allow the continuity of banking activity. There is not exactly a tariffed risk, since the securitization of this debt is unthinkable. And commercial banks, investment banks and banks from all sectors in general, taking risks in growth and trusting in market expansion, decided to rely on possible adjustments by lending resources.
Brazil experienced a similar problem with bank liquidity. With the Proer program, there was a resizing of financial institutions, with downsizing and greater liquidity. The consequences will certainly progress, but what we are noticing at the moment, in parallel, is strong pressure on prices and a reduction in the value of shares on the stock market.
In reality, when Greece announces that it is unable to pay its debts and needs to be paid, what happens is a serious circumstance that shakes the markets. We have been watching the stock markets fall undaunted for ten days, and the forecast is that we will once again reach , points, which will make half of the investors disappear and US$ trillion in fund losses. The question asked is: when will bank liquidity work, under Basel , in the event of a bottleneck in public finances in Greece and other countries? And what will be its consequences in Brazil?
It is worth highlighting that an international congress will be held in São Paulo from the rd to the th of June whose fundamental concern is to find means and solutions to the impasse. It is undeniable BTC Number Data that without a bankruptcy order from the public body, the presence of millions of credits from funds and banks will sustain the condition of a debt default , this default will spill over to international banks. It has been rumored that the few foreign institutions in the country would be selling their operations to minimize the damage caused by the crisis.
Considering this point of view, in Brazil the issue is the reduction of interest rates and spreads. The current situation dictates preserving liquidity, and the consequent reduction in access to credit is visible. The debt increased in size, registering a greater balance than in the last decade. With this, we are highlighting that the international public debt crisis in Eurozone countries will certainly affect financial institutions more strongly or not. The concentration process will be accentuated, given that the debt and losses incurred will not allow the continuity of banking activity. There is not exactly a tariffed risk, since the securitization of this debt is unthinkable. And commercial banks, investment banks and banks from all sectors in general, taking risks in growth and trusting in market expansion, decided to rely on possible adjustments by lending resources.
Brazil experienced a similar problem with bank liquidity. With the Proer program, there was a resizing of financial institutions, with downsizing and greater liquidity. The consequences will certainly progress, but what we are noticing at the moment, in parallel, is strong pressure on prices and a reduction in the value of shares on the stock market.