Crash for globale utlån i City of London

Bank of International Settlements og Telegraph melder at de globale utlånene fra City of London har hatt de raskeste fallene siden en begynte å føre statistikk.

Cross-border loans worldwide fell by $1.1 trillion (£740bn) in the first half of the year, reflecting the scramble by the financial industry to cut leverage by pulling credit lines and slashing risky exposure.

Foreign lending by UK banks fell by a staggering $884bn, equal to 81pc of the entire contraction in international lending.

The City is facing a double blow since worldwide issuance of bonds and securities has also gone into freefall, plummeting 77pc from over a trillion dollars to $247bn in the third quarter. The City has been the epicentre of Europe’s structured credit industry.

The collapse in bond issuance reflects the near-total closure of the capital markets in the late summer as credit spreads surged. Bonds issued in euros dropped by 94pc from $466bn to $28bn over the quarter.

Alt er ikke vel i kredittmarkedene.