Capital Banking

The need to load additional losses in the balance sheets deteriorate the situation of capital banking institutions should be to limit their capital requirements would force them to have to seek more funding. a It is certainly not a good time to go yet to seek capital market. Beyond scarcity, this may represent a bad signal about the health of the financial institution to opt for such action. a According to them from the banking sector, the decline in credit availability is not generating a restriction of credit and demand that since there is not much enthusiasm. The companies have shelved their expansion plans and consumers have cut back their spending. Thus, everything has become very severe in the country’s hyper.

To bet, according to Enrich and Fitzpatrick, is in this context that the claim will not recover until the second half of 2010. For those who know the experience of Argentina in the crisis of 2001, which would end the convertible model in early 2002 and shares many elements of the subprime mortgage crisis in their effects, although the country had a much smaller banking sector that the U.S. can be useful when making predictions. In this regard, the Argentine case, credit to the private sector did not recover until early 2004, and did so logically through the short-term financing. a If the experience in Argentina where the banking system as a whole was hit hard as or more than that suffered by the American system (as well as the blow to the economy, businesses and families) can be considered as a parameter comparison, then you can expect the credit recovery should take place towards the last quarter of 2009, that is, three quarters earlier than expected.

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