Monday, April 01, 2013

Banking crisis in Cyprus

http://thestar.com.my/news/story.asp?file=/2013/4/1/focus/12908389&sec=focus

This article explains the banking crisis in Cyprus and traces the root cause - insufficient regulation of the financial sector.

2 comments:

yujuan said...

Cyprus is a tiny country with no natural resources, highly dependent on the financial sector to attract foreign funds deposits, under no direct EU financial regulations before, using secretive Russian depositors' funds to invest in Greek Bonds now gone bust, now giving deep haircuts to those hapless foreign depositors and wealthy Cypriots.
So the average Joes with less 100,000 euros in Banks and their modest homes may be spared.
With EU fund injections, problem contained?
Now, would such a case happen in Singapore? Singapore also flooded with foreign funds, our Banks full of expensive mortgage loan portfolios, etc.

Soodo said...

No lah!
Cannot say insufficient regulation.

It's regulation with a light touch.
It's a disclosure based regulatory regime.
Does this sound familiar?

All the right noises.
All the wrong results.
Does this sound familiar?

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