Liquidity crisis

Fitch Ratings has revised its outlook for the Turkish banking sector from neutral to improving, citing reduced financial risks and increased investor confidence following the country's adoption of more conventional economic policies.

Capital markets have numerous benefits for different participants in the economy. For a company or entity in need of funding, domestic capital markets provide an alternative funding source from bank financing. While for investors and savers, capital markets can offer more attractive investing opportunities than bank deposits—depending on risk profile, liquidity needs, and other factors.

Leading economist Daron Acemo?lu said in an interview with Turkish daily Cumhuriyet that Turkey?s economic problems still come from inside, adding high liquidity in global markets helped Turkey overcome the 2001 and 2008 economic crises but the situation has now changed. 

Moody's Investors Service has said its outlook on Greece's banking system is ?negative,? owing to acute deterioration in funding and liquidity.

?These pressures are unlikely to ease over the next 12-18 months and there is a high likelihood of an imposition of capital controls and a deposit freeze,? the credit ratings agency said in a report released Wednesday.

Bulgarian Central Bank BNB's position on the developments at Corporate Commercial Bank (Corpbank or KTB) is a clear sign of the financial authority's "strong dependencies", KTB majority owner Tsvetan Vasilev has said.

 Finance Ministry?s state revenues and spending projections point to likely gap of 1 bln euros by end-March

By Sotiris Nikas

By Marcus Bensasson & Christos Ziotis

Greece must fulfill its agreement with its creditors ?as soon as possible? to alleviate the liquidity squeeze and higher funding costs of its lenders, Bank of Greece Governor Yannis Stournaras said.

The main opposition party is so eager to get its hands on the helm of government it is ignoring terse warnings from our international partners as it tries to reassure everyone that it has worked things out with the country?s creditors and that the cavalry is marching up from the south of Europe.