In addition to generating losses for investors, declines in valuations could make it more challenging for firms to obtain or extend financing—especially among risky, indebted firms—which in turn could be amplified by the high levels of risky corporate debt. Finally, business borrowing has risen more rapidly than GDP for much of the current expansion and now sits near its historical peak.
Just as we are unable at the moment to use our bank account in Frankfurt to effect transactions in Paris – though both accounts are in the same currency – so shall we be able to have a single account for transactions across the whole of Europe only once Serbia joins European Union and banks set up their branches in Serbia instead of daughter banks.