The impact of European crisis on banks in Asia
Euro crisis could create alert the business in Asia. Particularly those that relate directly trade with European countries. Payment transactions using the euro would bring Europe crisis to the Asian.
Asia’s economies are still growing. The World Bank predicts, this year, Asian economies grew 8.2%. But next year’s growth slowed to 7.8%. Cause, weakening European growth and falling commodity prices. According to Hofman, growth reached 7.8%, from Asia could spur productivity and domestic market demand.
During this time, many Asian countries rely on exports too. This condition is very vulnerable, given the demand for manufactured products and commodities in Europe and the United States (U.S.) weakened. Asia condition worsened floods in Thailand.Floods hit several sectors, given that Thailand is the production base of automotive and electronics world.
The impact of the euro zone debt crisis on Asian companies must be “controlled” because of the increase in regional trade and greater reliance on regional banks
Which alleviate the growing domestic market is large enough in countries such as China, India and Indonesia will also help alleviate the impact on the company if the crisis of the euro zone increased.
Director of the International Monetary Fund (IMF) Anoop Singh was quoted as saying by AFP on Tuesday (1/31/2012) said the collapse of Europe into a crisis is hitting Asia in terms of exports because of falling demand for exports from Eropa.Tapi he also stated, for the financial sector , the destruction of the banks in Europe do not give a significant impact on Asian banks. ”My feeling has been the financial sector in Asia did not affect anything. It is a high cost burden. But the demand for credit or financing is not stagnant,” said Singh. Hence Singh saw banking in Asia began to take over the position of European banks.