More pain ahead as asset writedowns reach 503 bln dollars: BIS

0 Comments | AFP, August, 2008

GENEVA (AFP) — The credit crisis has forced financial firms to write down 503 billion dollars worth of assets, but more losses could yet come in months ahead, the top world central banking body warned late Sunday.

The notion that rapidly-growing emerging markets were less reliant on developed markets has also been put to the test in recent months, particularly for countries that drew large investments from advanced economies, said the Bank for International Settlements (BIS).

Inflation further bit into household and corporate earnings in emerging markets, dampening investor sentiments, added the BIS, also known as the central bank for central bankers.

In its latest review of the global financial markets from end-May to late August, the Basel-based BIS said...