Banking
in sentence
2429 examples of Banking in a sentence
He suggested that a money rate of interest (set in the
banking
system) that was less than the natural rate of interest (set in the real economy) would result in inflation.
A new “shadow banking” system evolved, with highly pro-cyclical characteristics, and lending standards plummeted even as financial leverage and asset prices rose to extremely high levels.
True, some of China’s fiscal stimulus effectively consists of loans to the private sector via the highly controlled
banking
sector.
Despite the bail-in of four local banks, the bailout of Monte dei Paschi (one of Italy’s systemically important banks), the liquidation of two regional banks, and the market-led rescue of the mid-size
banking
group Carige – all within two years – the
banking
system has yet to be stabilized.
Will the underlying economic recovery – this year and next, the Italian economy should grow in real terms by 1% – assist Italy’s
banking
sector by keeping a lid on a stock of non-performing loans (NPLs) totaling nearly €180 billion ($220.9
In the aftermath of the collapse of Lehman Brothers in September 2008, Italy’s then-finance minister Giulio Tremonti famously endorsed the health of the country’s
banking
system.
The political backlash that ensued from the bail-in triggered a blame game between the government and the opposition parties, and even between politicians and regulators, with all blaming the European Union and its
banking
regulations.
The government that emerges on March 4 will have to make the
banking
sector a high priority.
Any effort to put Italy’s
banking
sector on a sounder footing will require a stable majority government, consistent determination to put economic growth at the center of the political agenda, and willingness to confront Italy’s many vested interests.
And if that narrative fuels a populist victory in March, reform of the
banking
sector will again be postponed, raising the eventual cost still further.
A chronic budget deficit was brought under control, infrastructure upgraded, and the
banking
sector strengthened.
For a while, booming or overheating real-estate markets and a thriving, but oversized
banking
sector can disguise a gradual loss of competitiveness and risks to fiscal sustainability, as occurred in the euro area.
When a country gives up its monetary sovereignty, its banks are effectively borrowing in a foreign currency, making them exceptionally vulnerable to liquidity shocks, like that which sparked turmoil in Europe’s
banking
system in 2010-2011.
But the problem with austerity in the eurozone is more fundamental: policymakers are attempting to address a sovereign-debt crisis, though the real problem is a
banking
crisis.
With Europe’s
banking
system triple the size and twice as leveraged as its US counterpart, and the ECB lacking genuine lender-of-last-resort authority, the sudden halt in capital flows to peripheral countries in 2009 created a liquidity-starved system that was too big to bail out.
While Draghi’s promise, embodied by the ECB’s “outright monetary transactions” program – as well as its long-term refinancing operation and emergency liquidity assistance program – has bought time and lowered yields, the eurozone’s
banking
crisis persists.
This was true of Thailand and South Korea, when both moved fast to strengthen their
banking
sectors after receiving IMF bailouts.
Central banks should put a floor under the value of a country’s
banking
system by committing to buy shares in an index fund of bank stocks at a predetermined price.
By guaranteeing to buy shares of a mutual fund, the central bank would provide an incentive for private investors to channel money to the stronger parts of the
banking
system while allowing the weaker parts to fail.
Finally, by offering to buy shares in a mutual fund of bank stocks, the central bank gives private investors the incentive and the confidence to recapitalize the
banking
system.
Over the last 18 months, Li’s government has been attempting to address these challenges, by overhauling China’s industrial structure, reducing excess production capacity, restricting lending, containing the shadow
banking
sector, and curbing real-estate investment.
The deterioration of economic conditions is casting doubt on their governments’ budgetary arithmetic, undermining political support for structural reform, and reopening seemingly closed questions about the stability of
banking
systems.
Ireland has a
banking
problem.
But, though Europe's currency union is at risk, and its
banking
union remains at an early stage of development, the endlessly creative European Commission is embarking on another adventure: a so-called “capital-markets union."
The Bank of England has argued that there should be no replication of the
banking
union grant of new powers to the European Central Bank at the expense of national central banks.
With
banking
assets amounting to roughly 300% of EU-wide GDP, compared to some 70% in the United States, large pools of savings are being left unused.
Unless the political mood changes radically in Europe – an unlikely development – it would be unrealistic to expect the capital-markets union to be anywhere near as transformational as the
banking
union has been.
During the controversy surrounding the Cypriot
banking
sector's collapse in 2013, Tsipras referred to EU leaders as “gangsters" – the same sort of rhetoric used by far-right European populists like Marine Le Pen and Geert Wilders.
The Emerging Economies’ Eurozone CrisisWASHINGTON, DC – Most of today’s economic institutions, from money to banking, evolved over many years – the unintended consequences of decisions by millions of individuals.
If Europe succeeds in making major fiscal and
banking
reforms and gets its economy in order, Edward will lose steam.
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