Banking system more than once will need help from the authorities

In September, immediately after the collapse of U.S. investment bank Lehman Brothers, the financial crisis took a new and alarming proportions. According to the head of the Bank of England Mervyn King, the first time since the First World War, the global banking system was on the verge of collapse. As a result, authorities in most developed and developing countries had to resort to extreme measures and partially nationalize several large banks to avoid their collapse, reports BBC. The results were not long in coming: the banks still have losses, but the specter of collapse in the past. And nobody knows what might happen if the authorities had not intervened in time, said a representative of the American Research Institute American Enterprise Institute Alex Pollock. However, one problem still remained: the rescued banks are in such poor condition that can not provide loans to businesses and individuals. Consequently, the speedy recovery of the global economy, which depends entirely on the credit markets, while not worth waiting for. According to estimates of Professor London School of Economics, Charles Goodhart, the number of loans in the UK is still growing, but because of the crisis, most companies should prepare for difficult times. And the problem with British companies appear when they are trying to get a new loan, adds Charles Goodhart. In the United States in recent years has also tightened credit conditions. According to Mr. Pollock, American companies became harder to get a new credit line. Moreover, sometimes the banks can not take a new loan, since the volume of deposits continued to decline, as Americans have been slow to take-earned money in the bank, say market participants. This is usually a fairly saturated market, and interbank lending (ICB). However, over the next several months, you can forget about it, experts say. Charles Goodhart notes that it has two main reasons. First, the banks now need every means to cope with the crisis. And secondly, the global banking system is experiencing a "crisis of confidence, and banks often do not run the risk of lending to each other, fearing the collapse of a financial institution. As a result, now the role of banks in the interbank market in the United States assumed the Federal Reserve System (FRS) the USA, adds Alexander Pollock. It is difficult not to agree: the Fed, performs the function of the Central Bank in the country, really now uses all possible means to provide loans to American fininstitutam. However, some experts note that in the future world's largest banks have not just need help. According to them, in case of worsening of world economic recession, bank losses will continue to grow, and eventually the authorities will again have to intervene to prevent another collapse of the banking system.