Bonds can provide massive support for banking sector: Analysts

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Most of the economic and financial experts said that fear of economic collapse is hitting the global markets. There are a number of banks adopted sensible banking policies.

The British and European banks have miscarried to sell the Changing European bonds in the current year targeted to maintain and stabilize banking sector. Last year, the European banks were able to get 45 billion Euros from bonds including making it to strive for in getting more bonds in the first two months of 2016 regardless not issuance of bonds in 2016. The Dealogic Data analysis also mentioned that it would boost further issues and problems. It would also stop investment programs concerned to the banking sector.

The President of the European Central Bank Mario Draghi said that last couple of days showing threats due to banks doesn’t have enough amount of capital to meet the challenge of expected financial crisis. It is clearly indicating that banking system need to be protected in order to meet expected challenges. It is important that reexamination backup bonds is considered more harmful than conventional bank bonds due to it provides minimum guarantee to lenders. The Dealogic Inc. indicated that the banks have issued backup bonds of changeable worth estimated at 40 billion Euros in 2016. Point to be noted that European banks are experiencing shortage of funding and most of the analysts have warned that European banks should deal with increasing costs and less revenue.

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