Save the Date – Conference Reminder
On Friday May 20th from 4 pm – 7 pm there will be a conference on:
Bank Credit Flows and Eurozone Stability: Theory, Evidence and Policy Implications
at the Institute of Bankers, 1 North Wall Quay, Dublin. The conference is jointly hosted by the Financial Mathematics and Computation Cluster (FMCC) at UCD, the Institute of Bankers, and the Department of Economics, Finance & Accounting at NUI Maynooth. Admission is free. We encourage early enrolment to register a place. We are grateful to the Science Foundation of Ireland for their generous sponsorship via a grant to the FMCC.
Presentations include:
Angela Maddaloni (European Central Bank) “Trusting the bankers: A new look at the credit channel of monetary policy”
Kieran McQuinn (Central Bank of Ireland) “Exploring the steady-state relationship between credit and GDP for a small open economy – the case of Ireland”
Bernd Schwab (European Central Bank) “Systemic risk diagnostics”
Brian O’Kelly (Dublin City University) “Reflections on the Irish bank credit model during the bubble period”
There will also be a panel discussion and an informal coffee/tea reception. Our thanks to all those who submitted proposals for the conference. Some excellent proposals could not be included simply because they did not fit with the specific theme of the conference as it evolved during the selection process. Please plan to attend!
5 replies on “Save the Date: Bank Credit Conference, on Friday May 20th, 4 pm – 7pm”
As a primer, the ECB quarterly bank lending survey might be of interest, just out today
http://www.ecb.europa.eu/stats/pdf/blssurvey_201104.pdf
For example
“A moderate tightening of credit standards on loans to enterprises. Euro area banks suggested that the tightening of credit standards, on average, mainly affected large firms (with a reported net tightening of 6% in the first quarter of 2011, compared with 0% in the fourth quarter of 2010).”
“In contrast to the previous survey round, this move was mainly driven by banks’ credit supply-side considerations related to access to market financing and by their liquidity positions.”
And
“Substantial contraction of housing loan demand”
“Net demand for consumer credit still sluggish”
“Looking forward, euro area banks generally expect a further tightening of credit standards on loans to households”
However
“Notable increase in the demand for loans to non-financial corporations… appeared to be mainly driven by a pick-up in financing needs for inventories and working capital and, for
the first time in more than two years, by positive developments in fixed investment.”
Deposits that are produced by credit are not really deposits – they are savings brought back from the future.
But what if there are little savings in the future ,what then ?
You can only fractionally multiply goverment debt / money as that is the money – not credit artifacts such as term accounts.
In fact banks do not produce credit with deposits – they just produce credit and have legal reserve requirements.
The leverage in the system is now absurd and yet the Euro masters refuse to produce enough money !!
The tiny fraction of goverment money in the euro system is a recipe for disaster.
In fact its way beyond absurd now – its beyond whatever is beyond the beyond.
This is a interesting little snippet from Hayek “Denationalisation of Money”
“Opposition to new system from established bankers
This necessity of all banks to develop wholly new practices
will undoubtedly be the cause of strong opposition to the
abolition of the government monopoly. It is unlikely that most
of the older bankers, brought up in the prevailing routine of
banking, will be capable of coping with those problems. I am
certain that many of the present leaders of the profession will
not be able to conceive how it could possibly work and therefore
will describe the whole system as impracticable and impossible.
Especially in countries where competition among banks
has for generations been restricted by cartel arrangements,
usually tolerated and even encouraged by governments, the
older generation of bankers would probably be completely
unable even to imagine how the new system would operate and
therefore be practically unanimous in rejecting it. But this
foreseeable opposition of the established practitioners ought not
to deter us. I am also convinced that if a new generation of
young bankers were given the opportunity they would rapidly
develop techniques to make the new forms of banking not only
safe and profitable but also much more beneficial to the whole
community than the existing one.”
His treatise was very influential in the creation of the Euro – tradional unsophisticated bankers thought of banking as fractionally multiplying a goverment money debt base.
But there is not enough goverment money to pay for private credit creation – the only other mechanism to clear the debt is the freefloating gold on the asset side of the Euro balance sheet.
The Euro was created to cut the balls off semi- sovergin republics and indeed Kingdoms.
Banks are now completly independent of goverment executives.
The Bond between the Prince and the Cardinal is broken.
Ultimate power lads – do not let it go to your heads.
http://www.youtube.com/watch?v=-qTA6ndc51w
As an additional one
http://ec.europa.eu/economy_finance/bef2011/
A free, high level eu economic conference. Registration closes thursday
IMPORTANT NOTE REGARDING FIREWALLS: If your internet access is from inside a network with a high-security firewall, you need to send an email to Irene.ward@ucd.ie in order to register for the conference. The standard conference registration form will not open inside a high-security firewall.