{"id":726,"date":"2020-07-29T13:53:35","date_gmt":"2020-07-29T13:53:35","guid":{"rendered":"https:\/\/www.stremon.com\/?p=726"},"modified":"2020-07-29T13:53:35","modified_gmt":"2020-07-29T13:53:35","slug":"business-bankruptcies-likely-to-surge-globally-without-threatening-recovery-says-bis","status":"publish","type":"post","link":"https:\/\/www.stremon.com\/business-bankruptcies-likely-to-surge-globally-without-threatening-recovery-says-bis\/","title":{"rendered":"Business Bankruptcies Likely To Surge Globally Without Threatening Recovery Says BIS"},"content":{"rendered":"<p>Business bankruptcies are likely to surge world-wide, but they may not threaten a global recovery, the Bank for International Settlements (BIS), a bank for central banks, warned in its 90<sup>th<\/sup>\u00a0annual report today.<\/p><div class=\"tzasx64d7b7743eb3e\" ><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\n<ins class=\"adsbygoogle\"\n     style=\"display:block; text-align:center;\"\n     data-ad-layout=\"in-article\"\n     data-ad-format=\"fluid\"\n     data-ad-client=\"ca-pub-8209967072221559\"\n     data-ad-slot=\"2673331731\"><\/ins>\n<script>\n     (adsbygoogle = window.adsbygoogle || []).push({});\n<\/script><\/div><style type=\"text\/css\">\r\n@media screen and (min-width: 1201px) {\r\n.tzasx64d7b7743eb3e {\r\ndisplay: block;\r\n}\r\n}\r\n@media screen and (min-width: 993px) and (max-width: 1200px) {\r\n.tzasx64d7b7743eb3e {\r\ndisplay: block;\r\n}\r\n}\r\n@media screen and (min-width: 769px) and (max-width: 992px) {\r\n.tzasx64d7b7743eb3e {\r\ndisplay: block;\r\n}\r\n}\r\n@media screen and (min-width: 768px) and (max-width: 768px) {\r\n.tzasx64d7b7743eb3e {\r\ndisplay: block;\r\n}\r\n}\r\n@media screen and (max-width: 767px) {\r\n.tzasx64d7b7743eb3e {\r\ndisplay: block;\r\n}\r\n}\r\n<\/style>\r\n\n<p>\u201cInsolvencies may well occur as the economy recovers\u2026. unless banks run into trouble. It is easier to imagine a recovery even in the presence of bankruptcies,\u201d said the white paper,\u201d the authors forecasted.<\/p>\n<p>BIS asserted the looming risk of insolvencies with an uncertain timing of the recovery makes it harder to distinguish between insolvent but viable firms, which<\/p>\n<p>require restructuring, and insolvent, unviable ones, which should be liquidated.<\/p>\n<p>Risk of insolvencies, said the Basel, Switzerland-based group, has been exacerbated by elevated debt levels.<\/p>\n<p>The debt burden may become unsustainable for some firms,\u201d BIS predicted.<\/p>\n<p>The authors of the report cautioned a surge in bankruptcy proceedings could overwhelm the system\u2019s restructuring capacity if courts become congested.<\/p>\n<p>In introducing the study, BIS General Manager Agust\u00edn Carstens said another problem firms face as the prospects for bankruptcies loom is many don\u2019t have enough cash.<\/p>\n<div class=\"recirc-unit recirc-unit-open\" data-gtm-vis-recent-on-screen-655684_1281=\"204349\" data-gtm-vis-first-on-screen-655684_1281=\"204349\" data-gtm-vis-total-visible-time-655684_1281=\"100\" data-gtm-vis-has-fired-655684_1281=\"1\">\n<div class=\"recirc-title\">Most Popular In:\u00a0Personal Finance<\/div>\n<ul class=\"recirc-story-list\">\n<li class=\"recirc-story\">\n<h3 class=\"recirc-headline\" data-ga-track=\"SEO Recirc Unit: 4\">New Stimulus Package Announced: $1,200 Second Stimulus Checks, Unemployment Benefits, Student Loan Relief, PPP Loans, School Opening, Coronavirus Testing<\/h3>\n<\/li>\n<li class=\"recirc-story\">\n<h3 class=\"recirc-headline\" data-ga-track=\"SEO Recirc Unit: 5\">How The Second Stimulus Check Is Similar Yet Different Than The First Stimulus Check<\/h3>\n<\/li>\n<li class=\"recirc-story\">\n<h3 class=\"recirc-headline\" data-ga-track=\"SEO Recirc Unit: 6\">Next Stimulus Package Released Today: $1,200 Stimulus Check, Reduced Unemployment Aid In HEALS Act<\/h3>\n<\/li>\n<\/ul>\n<\/div>\n<p>He said global economies are still at the early stages of the Covid-19 crisis and the long-term impacts will be profound.<\/p>\n<p>The BIS chief praised the actions of central banks to reduce the harm, asserting they have saved jobs and promoted financial stability.<\/p>\n<p>He predicted inflation will come back as the recovery takes hold.<\/p>\n<p>Looking broadly, the BIS white paper predicted the pandemic\u2019s legacy could be even deeper and longer lasting than the impact of the Financial Crisis.<\/p>\n<p>\u201cEconomic activity has collapsed even more steeply than in the Great Depression, to even greater depths<\/p>\n<p>than those of the (Globalized Financial Crisis). Many economies shrank by an annualized 25\u201340% in a<\/p>\n<p>single quarter, and some saw unemployment rates soar into the teens within a couple of months,\u201d the group pointed out.<\/p>\n<p>The response of prudential financial regulators around the globe has exceeded their efforts to contain the financial crisis in scale and scope, the authors added.<\/p>\n<p>The report noted aggressive risk-taking was prevalent in financial markets before the pandemic.<\/p>\n<p>\u201cValuations were frothy. Credit risk showed clear signs of underpricing in both advanced and emerging market economies,\u201d the white paper pointed out.<\/p>\n<p>On a hot button issue for financial firms, BIS said big tech and fintech firms, represent a major competitive threat to banks and similar service providers that give merchants the ability to accept electronic payments.<\/p><div class=\"jzipx64d7b7743eb76\" ><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\n<ins class=\"adsbygoogle\"\n     style=\"display:block; text-align:center;\"\n     data-ad-layout=\"in-article\"\n     data-ad-format=\"fluid\"\n     data-ad-client=\"ca-pub-8209967072221559\"\n     data-ad-slot=\"2673331731\"><\/ins>\n<script>\n     (adsbygoogle = window.adsbygoogle || []).push({});\n<\/script><\/div><style type=\"text\/css\">\r\n@media screen and (min-width: 1201px) {\r\n.jzipx64d7b7743eb76 {\r\ndisplay: block;\r\n}\r\n}\r\n@media screen and (min-width: 993px) and (max-width: 1200px) {\r\n.jzipx64d7b7743eb76 {\r\ndisplay: block;\r\n}\r\n}\r\n@media screen and (min-width: 769px) and (max-width: 992px) {\r\n.jzipx64d7b7743eb76 {\r\ndisplay: block;\r\n}\r\n}\r\n@media screen and (min-width: 768px) and (max-width: 768px) {\r\n.jzipx64d7b7743eb76 {\r\ndisplay: block;\r\n}\r\n}\r\n@media screen and (max-width: 767px) {\r\n.jzipx64d7b7743eb76 {\r\ndisplay: block;\r\n}\r\n}\r\n<\/style>\r\n\n<p>Source:\u00a0<a href=\"https:\/\/www.forbes.com\/sites\/tedknutson\/2020\/06\/30\/business-bankruptcies-likely-to-surge-globally-without-threatening-recovery-says-bis\/#711f76c01c64\" target=\"_blank\" rel=\"nofollow noopener\">forbes.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Business bankruptcies are likely to surge world-wide, but they may not threaten a global recovery, the Bank for International Settlements&#8230;<\/p>\n","protected":false},"author":5,"featured_media":727,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[6],"tags":[3134,3135,3137,3133,3132,3138,3131,3136],"_links":{"self":[{"href":"https:\/\/www.stremon.com\/wp-json\/wp\/v2\/posts\/726"}],"collection":[{"href":"https:\/\/www.stremon.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.stremon.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.stremon.com\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.stremon.com\/wp-json\/wp\/v2\/comments?post=726"}],"version-history":[{"count":1,"href":"https:\/\/www.stremon.com\/wp-json\/wp\/v2\/posts\/726\/revisions"}],"predecessor-version":[{"id":728,"href":"https:\/\/www.stremon.com\/wp-json\/wp\/v2\/posts\/726\/revisions\/728"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.stremon.com\/wp-json\/wp\/v2\/media\/727"}],"wp:attachment":[{"href":"https:\/\/www.stremon.com\/wp-json\/wp\/v2\/media?parent=726"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.stremon.com\/wp-json\/wp\/v2\/categories?post=726"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.stremon.com\/wp-json\/wp\/v2\/tags?post=726"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}