Photo: Wikimedia Commons
British bank Standard Chartered has moved to reduce its exposure to other European banks, and refocused its lending activities on Asia, according to The Telegraph.The bank, which has an emerging markets focus, has made the cuts because of fears that things may get worse in Europe over Greece.
The bank is still lending to European banks, it just isn’t lending as much.
From The Telegraph (Meddings is the bank’s finance director):
Standard Chartered has no direct exposure to the sovereign debt of peripheral eurozone countries like Greece and Portugal, but Mr Meddings warned that the “dislocation” caused by a worsening in the crisis would hit all banks.
Mr Meddings said there were likely to be “second order consequences” and that even banks with no holdings of the indebted countries’ bonds could be hurt, though he added that Standard Chartered remained a net provider of funding to the interbank lending market.
While this is just one bank, continued concerns over contagion risk for European banks from the Greece crisis could spark more banks to make similar decisions, tightening credit markets and initiating a new credit crisis style scenario.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.