Eurozone crisis as well as non-performing assets has attributed to worsen the condition of the German, French and European banks, reported The Economic Times citing the Bank of International Settlements (BIS).
According to an estimate, nearly 165 banks were bankrupt in the US alone, between 2008 and 2009, whereas in five years prior to 2008, only five banks failed in the US.
The study revealed that UK banks have been consistently increasing their exposure to China, while European and the US banks are trying to strengthen their presence in Latin America, including Brazil and Mexico.
Banks in France, Germany, and Europe have reduced their exposure to the crisis stricken European nations in the third quarter of 2011, as there is less sign of improvements.
Asia and Pacific region is getting nearly half of the total exposure of UK and US banks, with China grasping major chunk of European foreign claims, as the banks have increased their investment in the country to $121bn in third quarter of the fiscal 2011 from $90bn at the end of 2010.
In this growth trajectory, India is gaining momentum as the US and the UK banks have increased their investment from almost $50bn at the end of 2007 to $87bn and $71bn, respectively, in third quarter of the fiscal 2011.
In addition, during the last four years European Banks have poured nearly $60bn in the Indian market.
Being a favourite destination for the European banks, Brazil saw an investment of $250bn from these banks, which is about 11.6% of their total exposure to the developing countries.
Mexico also benefited from the European banks with significant exposure of nearly $200bn in the third quarter of 2011, the news website reported.
