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In September 2019, the nominal annual growth rate of the balance of the current credit portfolio granted by commercial banks to the non-financial private sector was 7.7% (4.5% real). This growth rate was lower than that of the previous month (8.9%) and also to the rate recorded in September 2018 (11.8%).
The debate on Central Bank Digital Currencies (CBDCs) was triggered by the emergence of cryptocurrencies like Bitcoin on the one hand, which may compete with traditional central bank money, and the trend towards the disappearance of cash in some countries on the other hand.
National Corporate Financing Survey (ENAFIN 2018). The International Monetary Fund (IMF) updates its Global Financial Stability Report. Real estate services grow 1.3% in the first half of 2019.
The signal of change in the dynamics of the fundraising of the banking sector was confirmed in August. The beginning of the cycle of cuts by the central bank of the short-term interest rate influenced so that the term deposits grew to its lowest level in almost two years.
Under BRRD 2, European banks’ MREL deficit is €112bn (63% attributable to O-SIIs and non-systemic banks) and €188bn lower than 2018 results, mostly explained by issuances of €194bn during 2018–2019. Erosion of profitability is now critical, with interest expense increasing 2.3-3.2%. Basel IV significantly increase needs.
In August 2019, the nominal annual growth rate of the balance of the current credit portfolio granted by commercial banks to the non-financial private sector was 8.9% (5.5% real). This growth was slightly higher than the previous month (8.6%) but less than the growth registered in August 2018 (11.9%).
Financial Education Day was celebrated in Spain on Monday, October 7. We have also recently started to notice the effects of the beginning of autumn on health.
The Capital Flows to Emerging Markets are normally associated to positive consequences but unfortunately can have perverse effects when they slow down or suddenly stop. A simple model of “Pull & Push” factors can be useful to understand the driver behind the capital flows to EMs both in the past and in the future.