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Bank Crisis Hits India: “Bank Stops Functioning, People Crying Outside Bank Branches”
Bank Crisis Hits India: “Bank Stops Functioning, People Crying Outside Bank Branches” The Punjab Maharashtra Co-operative Bank (PMC), in India, has been caught cooking the books and misreporting non-preforming loans (NPL) of Mumbai-based real estate developer Housing Development and Infrastructure Ltd (HDIL). As Reuters reports, PMC hid the bad loans with 21,000 fictitious accounts, which has spooked depositors, […]
Bangladesh’s Central Bank Offers Amnesty To Delinquent Borrowers, Prompting Mass Default
Bangladesh’s Central Bank Offers Amnesty To Delinquent Borrowers, Prompting Mass Default Bangladesh’s Central Bank in May introduced an amnesty program that allowed delinquent borrowers to make a small upfront payment and then pay off the rest of their debt over 10 years at favorable interest rates, according to Bloomberg. However, the plan also triggered a rush by healthy […]
In Shock Move, India Nationalizes Giant Shadow Bank At Center Of Market Rout
In Shock Move, India Nationalizes Giant Shadow Bank At Center Of Market Rout One week after we reported that India’s NPL crisis finally erupted after IL&FS, a major shadow bank at the heart of India’s economy defaulted in one day on three debt payments, India’s government announced on Monday that it would immediately seize control […]
India’s NPL Crisis Erupts: A Major Shadow Bank Defaults On Three Debt Payments
India’s NPL Crisis Erupts: A Major Shadow Bank Defaults On Three Debt Payments IL&FS Investment Managers, a unit of India’s Infrastructure Leasing & Financial Services (IL&FS) – an Indian infrastructure development and finance company and one of the nation’s largest “shadow banks” – which announced three debt defaults on Friday, said on Saturday morning its […]
ECB Capitulates On Defusing Eurozone’s “$1 Trillion Ticking Time Bomb”
ECB Capitulates On Defusing Eurozone’s “$1 Trillion Ticking Time Bomb” In late 2017, the ECB surprised central bank watchers, briefly spooked markets, and angered many Italians, with its plan to eradicate what many have dubbed the “ticking time-bomb” at the heart of the Eurozone, namely the roughly $1 trillion in non-performing loans across European banks […]
114 Italian Banks (Roughly 23%) Have NPLs Exceeding Tangible Assets
114 Italian Banks (Roughly 23%) Have NPLs Exceeding Tangible Assets 114 Italian banks have non-performing loans that exceed tangible assets. Ratios above 100% are signs of severe stress. The headline image is from the from ilsole24ore.com. The article is dated March 25, 2017. The translated headline reads “Here are the 114 Italian banks at risk […]
PBoC Spins China’s Bad-Loan Data
PBoC Spins China’s Bad-Loan Data In a recent speech at Bloomberg’s headquarters in New York, People’s Bank of China Deputy Governor Yi Gang reassured his audience on the level of non-performing loans (NPLs) in the Chinese banking sector. It had, he said, “pretty much stabilized after a long period of climbing. That’s a good development […]
The Italian Banking Crisis: No Free Lunch – Or Is There?
The Italian Banking Crisis: No Free Lunch – Or Is There? It has been called “a bigger risk than Brexit”– the Italian banking crisis that could take down the eurozone. Handwringing officials say “there is no free lunch” and “no magic bullet.” But UK Prof. Richard Werner says the magic bullet is just being ignored. On […]
Monte Paschi Rescue On The Rocks: Regulators Now “Expect Bank To Ask Italy For Bailout”
Monte Paschi Rescue On The Rocks: Regulators Now “Expect Bank To Ask Italy For Bailout” Ever since two months ago, when Italy’s third largest bank – and the world’s oldest – Sienna’s Monte dei Paschi, failed Europe’s latest stress test, it had scrambled, and assured markets, that it would obtain a private sector cash injection, […]
George Friedman: Italy Is the Mother of All Systemic Threats
George Friedman: Italy Is the Mother of All Systemic Threats Italy has been in a crisis for at least eight months, though mainstream media did not recognize it until July. This crisis has nothing to do with Brexit, although opponents of Brexit will claim it does. Even if Britain had voted to stay in the EU, […]
A Look Inside Europe’s Next Crisis: Why Everyone Is Finally Panicking About Italian Banks
A Look Inside Europe’s Next Crisis: Why Everyone Is Finally Panicking About Italian Banks Back in May 2013, we wrote an article titled “Europe’s EUR 500 Billion Ticking NPL Time Bomb” in which we laid out very simply what the biggest danger facing European banks was: non-performing, or bad, loans. We further said, that “Europe’s non-performing […]
Italy Seeks “Last Resort” Bailout Fund To “Ringfence” Troubled Banks, Meeting Monday
Italy Seeks “Last Resort” Bailout Fund To “Ringfence” Troubled Banks, Meeting Monday Italy’s finance minister, Pier Carlo Padoan, wants to “ringfence” its troubled banks. Padoan called a meeting of the executives of Italy’s troubled banks in Rome on Monday. The banks allegedly will come up with a “Last Resort” bailout fund. Last resort or first […]
Caught On Tape: “Enormous Crowds” Of Unemployed Chinese Miners Take To The Streets, Clash With Riot Police
Caught On Tape: “Enormous Crowds” Of Unemployed Chinese Miners Take To The Streets, Clash With Riot Police In early November, we said that far from the traditional risk factors affecting China’s economy, including the slowing economy, the stock market (and now housing 2.0) bubble, the soaring NPLs, and record debt, the most under-reported risk facing China is […]
China Proposes Unprecedented Nationalization Of Insolvent Companies: Banks Will Equitize Non-Performing Loans
China Proposes Unprecedented Nationalization Of Insolvent Companies: Banks Will Equitize Non-Performing Loans In what may be the biggest news of the day, and certainly with far greater implications than whatever Mario Draghi will announce in a few hours when we will again witness the ECB doing not “whatever it takes” but “whatever it can do”, moments ago Reuters […]
Will Italian banks spark another financial crisis?
Will Italian banks spark another financial crisis? In the 14th century, the Medici family of Florence began its rise to prominence, investing profits from a thriving textile trade to fund what would become the largest banking institution in Europe. The success of the legendary banking family helped to usher in the Italian Renaissance and thus change […]
