Here is a Great Graphic that Felix Salmon at Reuters picked up from Jonathan Carmel of Camel Asset Management. It shows that as German banks have reduced their exposures to the periphery in Europe, the Target2 exposures of the BBK have grown.
The two seem to be independent. The German banks have consciously decided to reduce exposure to the periphery. The increase in Target2 imbalances are the result of various and decentralized decisions.
The Target2 imbalances reflect trade and current account related transactions as well as purely financial transactions, such as shifting deposits.
Great Graphic: Target2 and German Bank Claims
Reviewed by Marc Chandler
on
June 18, 2012
Rating:
Reviewed by Marc Chandler
on
June 18, 2012
Rating:
