{"id":10806,"date":"2015-02-24T11:11:00","date_gmt":"2015-02-24T10:11:00","guid":{"rendered":"http:\/\/blog.debitos.de\/?p=10806"},"modified":"2015-02-24T11:11:00","modified_gmt":"2015-02-24T10:11:00","slug":"global-debt-levels-increased-57-trillion-2007","status":"publish","type":"post","link":"https:\/\/www.debitos.com\/de\/news\/global-debt-levels-increased-57-trillion-2007\/","title":{"rendered":"Global debt levels have increased by $57 trillion since 2007"},"content":{"rendered":"

More than seven years have passed since the beginning of the financial crisis.\u00a0Experts agree that the crisis was to a significant degree caused by too much leverage of both private \"McKinsey<\/a>households and governments. You’d think that this should have changed over the past few years. Unfortunately, you’d be\u00a0horribly mistaken.\u00a0A recent study published under the heading\u00a0\u201eDebt and (not much) deleveraging\u201c<\/em> by the McKinsey Global Institute examines the\u00a0evolution of debt levels across 47 countries<\/a> and comes to a frightening result:\u00a0Global debt levels have grown by $57 trillion since 2007. What’s more, all 22 developed countries in the sample\u00a0\u201etoday have higher levels of borrowing relative to GDP than they did in 2007\u201c<\/em>. At the same time, the ratio of debt to GDP increased by 17 percentage points across the entire sample of 22 developed and 25 developing countries. McKinsey therefore warns that debt levels that\u00a0outpace GDP growth\u00a0pose \u201enew risks to financial stability and may undermine global economic growth.\u201c<\/em>
\nBad news from governments and households, good news from the financial sector<\/strong>
\n\"McKinsey<\/a>The study points out three major areas that must be tackled in the coming years, namely the increase in\u00a0government debt, the rise of household\u00a0debt, and specifically the debt levels in China, which\u00a0quadrupled\u00a0from $7 trillion to $28 trillion in\u00a0just seven years.\u00a0The researches are convinced that neither the\u00a0deep fiscal adjustments nor large\u00a0increases in GDP growth that could help the six most indebted countries to\u00a0deleverage to a reasonable level will materialize. As a result, they suggest unconventional approaches such as\u00a0\u201eextensive asset sales, one-time taxes on wealth, and more efficient debt-restructuring programs\u201c<\/em>. They refrain from any statements how realistic they deem these measures to be implemented. It might come as a surprise to some, but the financial sector provides some of the good news in the study because it has not only deleveraged but also managed to decrease the most damaging elements of shadow banking. At the same time, new players enter the market and provide credit to corporates, thus filling the gap that\u00a0banks bound by stricter regulatory regimes leave behind.\u00a0Policy makers should therefore consider the\u00a0measures they took\u00a0when deleveraging the financial sector, evaluate, learn and adapt them accordingly to tighten the grip on government indebtedness.
\nDebitos helps banks and corporates to deleverage quickly<\/strong>
\nOne of the\u00a0unconventional measures that the McKinsey researchers mention could be\u00a0our online-platform for trading non-performing loans<\/a>. It\u00a0helps banks and corporates alike to reach several goals in the NPL\u00a0divestiture process: Speed, transparency and a significantly lower cost in\u00a0reducing their non-performing loan books. This is achieved by auctioning off all NPL-portfolios in a real-time bidding process that increases competition and pushes transaction prices up.\u00a0While sellers reach more than 280 qualified investors on\u00a0Debitos, they can also opt for a closed bidder group, inviting only a selection of buyers to the due diligence and placing their bids on the NPL-portfolios offered. This allows sellers to\u00a0control the entire process through the platform instead of having to coordinate all parties individually. A smart way to deleverage if speed (to fulfill regulatory requirements)\u00a0is of the essence.<\/p>\n","protected":false},"excerpt":{"rendered":"More than seven years have passed since the beginning of the financial crisis.\u00a0Experts agree that the crisis was to a significant degree caused by too much leverage of both private households and governments. You’d think that this should have changed over the past few years. Unfortunately, you’d be\u00a0horribly mistaken.\u00a0A recent study published under the heading\u00a0\u201eDebt… mehr erfahren<\/a>","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[7,16,64],"class_list":["post-10806","post","type-post","status-publish","format-standard","hentry","category-nachrichten-de","tag-debitos","tag-non-performing-loans","tag-risk-management"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.debitos.com\/de\/wp-json\/wp\/v2\/posts\/10806","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.debitos.com\/de\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.debitos.com\/de\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.debitos.com\/de\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.debitos.com\/de\/wp-json\/wp\/v2\/comments?post=10806"}],"version-history":[{"count":0,"href":"https:\/\/www.debitos.com\/de\/wp-json\/wp\/v2\/posts\/10806\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.debitos.com\/de\/wp-json\/wp\/v2\/media?parent=10806"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.debitos.com\/de\/wp-json\/wp\/v2\/categories?post=10806"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.debitos.com\/de\/wp-json\/wp\/v2\/tags?post=10806"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}