US Economics Weekly Concerns over student loans overdone The rapid rise in the value of outstanding student loans and the spike in the default rate have fuelled fears that student loans are the next bubble. Aside from the risk that excessive borrowing early... 30th November 2012 · 1 min read
UK Economics Update Household Borrowing Monitor (Oct.) Household borrowing growth remains pretty weak, although there are tentative signs that the Bank of England’s Funding for Lending Scheme (FLS) is starting to have a positive impact. 29th November 2012 · 1 min read
Global Markets Update How will Basel III affect the demand for gold? There is still widespread confusion and uncertainty over the impact that the Basel III regulations might have on the demand for gold. Gold is an “asset” rather than “capital” and therefore... 28th November 2012 · 1 min read
Europe Economics Update Euro-zone Monetary Indicators Monitor (Oct. 12) The latest euro-zone monetary data revealed a further small acceleration in the growth of money and bank lending in the region. But weak credit growth remains a major constraint on economic activity... 28th November 2012 · 1 min read
Europe Economics Update Could Cyprus be the first domino to fall? The news that Cyprus is about to run out of money has given a dangerous new angle to the euro-zone crisis. The economy is so small that a bail-out would be very cheap, but the Government will be... 22nd November 2012 · 1 min read
Europe Economics Update French downgrade highlights troubles in the core The direct effect of the latest downgrade of France should be modest. But it threatens to deepen the political rift between France and Germany, making policies to tackle the euro-zone’s debt crisis... 20th November 2012 · 1 min read
China Economics Update Slow loan growth no concern given signs of economic recovery The tepid pace of bank lending revealed in figures released today will not be much of a concern to policymakers given the upbeat tone of recent economic data, including October’s double-digit increase... 12th November 2012 · 1 min read
Latin America Economics Update Bank failures reflect previous financial excesses The recent seizure of a handful of small Brazilian banks and a Colombian brokerage underline the extent of financial excesses in parts of the region in recent years. While there may be additional bank... 8th November 2012 · 1 min read
Africa Economics Update Is the pace of Nigerian credit growth a cause for concern? After Nigeria’s banking crisis of 2008/09, some commentators are starting to voice fresh concerns about the recent rapid pace of growth in private sector credit. But while we share some of these... 6th November 2012 · 1 min read
UK Economics Update PPI payments still not a game-changer for spending outlook UK banks have now increased their provisions for compensation payments for mis-sold Payment Protection Insurance (PPI) policies to £15bn – equal to 1.5% of annual household incomes. However, we think... 5th November 2012 · 1 min read
China Economics Focus Is rapid credit growth in Asia something to be worried about? For emerging Asia as a whole, private sector credit as a share of GDP has surged over the past few years and is now at an all-time high, leading some commentators to suggest that the region could be... 1st November 2012 · 1 min read
US Economics Update Banks more willing to lend, but demand faltering The Fed's latest Senior Loan Officer Survey (SLOS) shows that banks are more willing to lend, but the problem is that, with global economic growth slowing and the fiscal cliff looming, US households... 31st October 2012 · 1 min read
Europe Economics Update French outlook darkens as consumers cut back Recent falls in French consumer spending are a blow to the economy, which has been heavily reliant on households for growth in the past. With unemployment near a record high, banks cutting back their... 31st October 2012 · 1 min read
UK Economics Update Household Borrowing Monitor (Sep.) The latest household borrowing indicators seemed to reinforce the positive news from last week’s GDP data. But in the face of continued declines in real pay, a pick-up in borrowing may be a symptom of... 29th October 2012 · 1 min read
Canada Economics Weekly Canada not immune to potential sub-prime problems The sub-prime mortgage crisis is often miscast as the cause of the US housing bust and that because Canada's sub-prime industry is supposedly much smaller in comparison, fears of a similar housing... 29th October 2012 · 1 min read
Europe Economics Update Euro-zone Monetary Indicators Monitor (Sep. 12) The latest monetary data have revealed that commercial banks are still using ECB funds to buy government bonds. Worryingly, though, the downturn in lending to the private sector has accelerated. 25th October 2012 · 1 min read
