Banking
in sentence
2429 examples of Banking in a sentence
Whereas Sweden adopted this approach successfully during its
banking
crisis in the early 1990’s, the current US and British approach may end up producing Japanese-style zombie banks – never properly restructured and perpetuating a credit freeze.
New Managing Director Christine Lagarde’s recent call for forced recapitalization of Europe’s bankrupt
banking
system is a good start.
The
banking
sector is still digging out from the bad loans extended in the aftermath of the global meltdown in 2008.
In the absence of rebalancing, any one of several potential tipping points could seriously compromise the economy’s ability to pull off another soft landing: deteriorating credit quality in the
banking
system; weakening export competitiveness as wages rise; key environmental, governance, and social problems (namely, pollution, corruption, and inequality); and, of course, foreign-policy missteps, as suggested by escalating problems with Japan.
When output crumbled due to a profound
banking
and financial crisis (linked to the collapse of the gold standard), tax revenues plummeted in the US and Europe, and conservative governments tried to cut budget spending to limit budget deficits.
Instead, the government closed down the
banking
system, so that depositors could no longer convert their pesos into dollars!
Closure of the
banking
system led to a full collapse of confidence in the country.
The correct move now is to restore confidence in the
banking
system and the currency.
In addition, the international community should offer emergency funding to help provide deposit insurance for the
banking
system, thereby re-establishing a modicum of confidence in financial institutions.
International banks in Argentina should work with the Government to restore
banking
functions within days, not months.
The origin of the universal
banking
system goes back to a situation facing the 19th century Germany that was in some ways similar to that confronting the transition economies today: the financial needs of the rapidly growing heavy industries which -- in the face of the underdeveloped capital markets in Germany-- could only be met by commercial banks, many of which were founded by industrial leaders themselves.
These changes create a fertile ground for a fee-based corporate advisory business, an area of
banking
that has traditionally been a stronghold of US investment
banking.
German financial institutions now recognize that they need to be competitive with the Americans in their global investment
banking
capabilities -- including the skills of take-over finance -- if they want to get a hold of a large chunk of this highly profitable business.
EMU will further accelerate these fundamental changes by stimulating cut-throat competition and creating a large and liquid capital market, leading to a shake-out in the financial sector itself, as corporations consolidate their European
banking
relations among a smaller number of institutions.
Does this mean that just as the institution of universal
banking
is being held up as a model in many postcommunist countries, we are witnessing its end in Germany itself?
Europe’s Short VacationNEW YORK – Since last November, the European Central Bank, under its new president, Mario Draghi, has reduced its policy rates and undertaken two injections of more than €1 trillion of liquidity into the eurozone
banking
system.
This led to a temporary reduction in the financial strains confronting the debt endangered countries on the eurozone’s periphery (Greece, Spain, Portugal, Italy, and Ireland), sharply lowered the risk of a liquidity run in the eurozone
banking
system, and cut financing costs for Italy and Spain from their unsustainable levels of last fall.
Investors will now dissect the implications of his departure for the ability of the monetary authorities to ensure price stability and encourage growth, or rebuild a
banking
system beset with non-performing loans.
By buying government securities, the central bank injects cash into the
banking
system.
The shadow
banking
sector’s dependence on the official
banking
sector’s liquidity and guarantees, and thus ultimately on the government, has not even been touched.
The most highly touted change – the separation between proprietary trading and commercial
banking
(also known as the “Volker rule,” after former US Federal Reserve chairman Paul Volker) – has nothing to do with what caused the crisis, and most likely was approved because it was ineffective.
Liberated from political pressure, central bankers fell prey to intellectual capture, owing to a natural inclination to please those most like them: bankers and
banking
scholars.
The board of the New York Fed reads like a who’s who of the
banking
world.
How can we expect these governors to be independent from bankers when they have lived, breathed, and eaten the
banking
perspective for their entire careers?
In response, the US Congress has just enacted the Sergei Magnitsky Rule of Law Accountability Act, which prohibits anyone implicated in Magnitsky’s detention or death – or others suspected of gross human-rights abuses – from entering the US or using its
banking
system.
Its clients are the banks; it is a place where banks can go to borrow money when they really need to; and its functions are to support the
banking
sector so that banks can make their proper profits as they go about their proper business.
In other words, a central bank’s primary responsibility is not to preserve the health of the firms that make up the
banking
sector, but rather to maintain the robust functioning of the economy as a whole.
For both, reducing the imbalance between aggregate supply and aggregate demand required, first and foremost, preserving the
banking
system; and preserving the
banking
system required boosting aggregate demand to bring it closer to aggregate supply.
More precisely,
banking
regulation in the advanced countries may have precipitated financial crisis across the developing and postcommunist world.
Under international
banking
regulations prepared by the Bank for International Settlements (BIS), the club of central banks based in Basle, Switzerland, banks must maintain adequate bank capital.
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