Crunch claims billions in US

The credit crunch has claimed more than US$503 billion ($590 billion) from US businesses since it first bit into the economy more than a year ago.

Such are the findings of the Bank for International Settlements (BIS), which the Australian has described as the “central bank for central bankers”.

The group warned that while losses have been substantial, businesses can expect to see further writedowns in the future as concerns about asset quality persist.

BIS also noted that emerging markets had not been able to weather the storm as effectively as many analysts had hoped, with the group identifying a “dramatically changing environment in recent months” for growth economies.

In a report published in June, the organisation warned that the global economy could be in for a worse downturn than many had anticipated, with cheap credit cards and personal loans said to be to blame.

A statement accompanying the new report pointed out that credit markets had come under renewed pressure during the last three months.ADNFCR-1761-ID-18758100-ADNFCR