- Croatia: Credit Institution's Total Assets and Liabilities (Jun)
- Croatia: Credit Institution Foreign Assets and Liabilities (Jun)
- Macedonia: Policy Rate (N962RD) (Jul), Exchange Rates (Jul)
- 07/31 Sri Lanka: Commerical Bank Lending Rate (JUL)
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- US: Employment Cost Index (Q2)
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Economy in Brief
U.S. Initial Unemployment Insurance Claims Recoup Earlier Decline
Initial unemployment insurance claims rebounded to 302,000 (-9.3% y/y) during the week ended July 26...
EMU Unemployment Falls
The rate of unemployment in the EMU fell to 11.5% in June from 11.6% in May...
U.S. GDP Recovery is Surprisingly Brisk
The advance GDP estimate indicated a 4.0% rate of growth during Q2 after a revised 2.1% Q1 decline...
U.S. ADP Employment Increase Throttles Back
The ADP/Moody's National Employment Report indicated a 218,000 rise (2.2% y/y) in July nonfarm private sector jobs...
FOMC Sees Economic Rebound; Pares Back Bond Purchases Further
The Fed indicated that the economy, consumer spending, business investment and job creation each had improve...
EU Indices Take a Step Back in July as the EMU Reading Steps Up
The EU index of economic sentiment fell to 105.8 in July from 106.4 in June...
by Louise Curley June 4, 2012
Spain is in trouble once again. Capital is leaving the country and interest rates are rising, as can be seen in the attached chart. The 10 year bond rate was 6.5% on June 1st and probably higher today. The European Central Bank, the European Commission and the International Monetary Fund together with the Spanish government are engaged in trying to find ways to ameliorate the situation while the foreign banks that have lent to Spanish banks in the past are worried about their exposure to these banks.
Some Information on foreign banks' exposure to Spanish banks, as well as to Greece, Ireland and Portugal, can be found in Haver. In The Bank of International Settlements (BIS) data base, there is a table "Foreign Exposure to Greece, Ireland, Portugal and Spain" under the section, Consolidated International Claims on BIS Reporting Banks. Data are quarterly and begin in 2010. Most data end in the fourth quarter of 2011. Countries covered are Germany, France, Italy, Other Euro Area, Japan. U. S. U. K. and Rest of the World. U. S. banks appear to have the largest exposure, $227.7 billion dollars, to Spanish banks followed by Germany and other European Countries. Japanese and Rest of the World banks have much smaller exposures to troubles in the Spanish Banks.
|Exposure of Banks to Claims from Greece, Ireland, Portugal and Spain, Q4 2011 (Billions USD)|
|U. K. Banks||137.5||33.3||192.1||22.3|
|Other Euro Area*||179.6||21.9||67.2||33.5|
|Rest of World Banks*||41.3||5.7||57.3||9.5|
|* Data are as of Third Quarter, 2010|