{"id":19831,"date":"2013-03-27T06:10:25","date_gmt":"2013-03-27T06:10:25","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=19831"},"modified":"2013-03-27T06:10:44","modified_gmt":"2013-03-27T06:10:44","slug":"cyprus-was-the-second-most-exposed-banking-system-in-europe-after-luxembourg","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2013\/03\/27\/cyprus-was-the-second-most-exposed-banking-system-in-europe-after-luxembourg\/","title":{"rendered":"Cyprus was the second most exposed banking system in Europe &#8211; after Luxembourg"},"content":{"rendered":"<p>Cyprus continues to\u00a0confuse\u00a0people, so some fact help. I;ve been scanning around for some given pressure on my own time and two blogs\u00a0gave\u00a0really helped. The first is Bill Mitchell's blog, <a href=\"http:\/\/bilbo.economicoutlook.net\/blog\/?p=23203\" target=\"_blank\">which includes the following<\/a>:<\/p>\n<blockquote><p>The European\u00a0Central\u00a0Bank publishes its \u2014\u00a0<a href=\"http:\/\/www.ecb.int\/pub\/pdf\/other\/eubankingstructures201009en.pdf\">EU Banking Structures 2010<\/a>\u00a0\u2014 the last publication being in September 2010.<\/p>\n<p>It provides detailed information about the size of banks and other interesting financial data.<\/p>\n<p>The following Table is constructed using data in that publication and shows the total assets of credit institutions in Europe as a percentage of GDP (a measure of the size of the economy).<\/p>\n<p>It is clear that since 2005 the size of the banking sector in Cyprus has grown rapidly but not all that differently to say the United Kingdom or Ireland.<\/p>\n<p>And certainly, this growth was very evident at the time Cyprus joined the Eurozone in 2008.<\/p>\n<p><a href=\"http:\/\/bilbo.economicoutlook.net\/blog\/wp-content\/uploads\/2013\/03\/ECB_Bank_Assets_PC_GDP_2005_2009.jpg\" rel=\"lightbox[23203]\"><img loading=\"lazy\" decoding=\"async\" title=\"ECB_Bank_Assets_PC_GDP_2005_2009\" alt=\"\" src=\"http:\/\/bilbo.economicoutlook.net\/blog\/wp-content\/uploads\/2013\/03\/ECB_Bank_Assets_PC_GDP_2005_2009.jpg\" width=\"453\" height=\"649\" \/><\/a><\/p><\/blockquote>\n<p>Much of the data is, in itself, worrying; not least the UK ratio. But what is clear is that Cyprus grew\u00a0disproportionately\u00a0and finance was\u00a0disproportionate. Only Ireland and Luxembourg (which\u00a0is off all scales) match it for\u00a0disproportionate\u00a0finance.<\/p>\n<p>Luxembourg's exposure is\u00a0extraordinary. Ireland\u00a0has\u00a0already\u00a0crashed. The UK\u00a0remains\u00a0in trouble. But watch out for Malta, where risk is now very high I suspect, and Denmark is also over-exposed, but outside the Euro (which should, like the UK,\u00a0save it).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cyprus continues to\u00a0confuse\u00a0people, so some fact help. I;ve been scanning around for some given pressure on my own time and two blogs\u00a0gave\u00a0really helped. The first<br \/><a class=\"moretag\" href=\"https:\/\/www.taxresearch.org.uk\/Blog\/2013\/03\/27\/cyprus-was-the-second-most-exposed-banking-system-in-europe-after-luxembourg\/\"><em> Read the full article&#8230;<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[70,35,44],"tags":[],"class_list":["post-19831","post","type-post","status-publish","format-standard","hentry","category-banking","category-economics","category-europe"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/19831","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=19831"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/19831\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=19831"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=19831"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=19831"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}