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Trying to hold firm amid sinking global markets

Things will come to a head if banks sit on loans for oil exploration that go bad.

TIP OF THE ICEBERG: Shell Oil's 'Polar Pioneer' rig platform on an exploration mission to waters off Alaska. If global banks hang on to loans for oil exploration that could eventually go bad, it will create losses in the financial sector that could cause a pullback in lending. In this scenario, loans for oil exploration could be what subprime mortgages were in 2007.

IF you look only at the global economy, and what leading forecasters think it will do in 2016, things look to be in a reasonably solid state. The world economy will grow 3.4 per cent this year, economists at the International Monetary Fund projected this week, up from 3.1 per cent in 2015.