The next global economic crisis has exact start date

A blog Bloomberg related future problems in the world of business with the entry into force of the agreements of Basel III, which involve a reform of banking regulation Alex GrimmReuters 1.9K215Those who seek a glimpse of when it might the result next crisis global economy, a blog of the Bloomberg agency dedicated to finance proposes to mark on the calendar on 1 January 2018. in his opinion, the date was outlined at the end of 2010, when it was signed and released set of so- called Basel accords III , involving reform of the coordinated bank regulation between countries in Europe and North America. in 2017 , financial institutions and may not use their internal models to assess the risks involved in derivatives for counterparts. In 2018 this will be extended to the securitization of assets Since 2017, warns columnist Christopher Langner, "financial institutions no longer can use their internal models to assess the risks involved inderivatives to counterparties. In 2018 this will be extended to the securitization of assets and thereafter, although the exact date is yet to be determined, lenders will have to evaluate all loan customers based on the standards set by the Basel committee. " this way banks will be limited when lending money to people, both natural and legal, and only credit will allow the most reliable borrowers. Also unified the total volume of loans granted in proportion to the accumulated balance limits will. These restrictions shall encourage an increase in the number of bankruptcies worldwide. Insolvencies will become increasingly tangible, even before the mandatory application of the new rules, predicts columnist.

Among other consequences Langner emphasizes the need to lay off hundreds of thousands of employees of credit intermediation (US only about 2.6 million people work in this sector). The layoffs will affect more people than during the years 2006 and 2009, before and during the recent global financial crisis.

It will be the small and medium enterprises which suffer more losses and run the risk of completely losing access to credit resources. Basel III encourages banks to cooperate only with multinational and other large enterprises with more established businesses. In addition, new International Financial Reporting Standards, which are part of the package, implemented early compensation possible credit losses: a step that can increase at least one third of the assets in many banks.