Example collocations logo

Banking in sentence

2429 examples of Banking in a sentence

SOEs may also use the unregulated shadow banking system to re-lend at higher interest rates the cheap money they receive to private businesses, which cannot borrow reliably from the formal banking system.
Whereas the interest rate of a one-year loan in the formal banking system is around 5%, the average one-year interest rate in the Wenzhou shadow banking market (to cite one example) was around 16% in November.
But the cause was that our creditors, the so-called Troika (the European Commission, the European Central Bank, and the International Monetary Fund), made clear that they would close down our banking system to force our government to accept a fresh extend-and-pretend loan agreement.
For two years, it has adhered to an IMF program, achieving targets for improving public finance and the banking sector.
On the microeconomic level, risks include, for example, weak banking sectors.
Curing the banking system will also take time.
Building the banking sector’s capacity and managing exchange-rate risk in some African countries would also help to realize Africa’s potential for sustainable energy production.
But Europe’s policymakers claim to be making progress toward a so-called “banking union,” which means collective banking supervision, rather than a merger of banks themselves.
The case for a pan-European supervisor is widely accepted, especially as the European Banking Authority (the EU’s banking regulator) proved feeble in carrying out financial stress tests: the first tests were so weak that even Spain’s now-bankrupt savings banks could pass with flying colors.
But the method chosen by the Commission to implement a banking union is fatally flawed.
In the case of the banking union, they plan to use Article 127(6) of the Lisbon Treaty which allows the European Council to grant authority to the ECB to perform specific tasks concerning “policies relating to the prudential supervision” of certain financial institutions in the Union.
The importance of these structures is that they insulate the central bank’s monetary-policy independence from corruption by the tighter accountability requirements that inevitably come with banking supervision.
The proposed construction of a banking union reveals this fundamental flaw at the heart of the European project today.
Ever since Japan’s banking crisis began in 1990, the country has been in a liquidity trap, with central bank rates close to zero, and from 1998 to 2005 the price level declined by more than 4%.
They did nothing to stabilize rickety banking systems.
This rendered potentially insolvent commercial banks, whose balance sheets were loaded with such bonds, giving rise to Europe’s twin sovereign-debt and banking crisis.
They would have to tackle the banking and the sovereign-debt problems simultaneously, without neglecting to reduce divergences in competitiveness.
The eurozone needs a banking union: a European deposit-insurance scheme in order to stem capital flight, a European source for financing bank recapitalization, and eurozone-wide supervision and regulation.
It is clear what is needed: a European fiscal authority that is able and willing to reduce the debt burden of the periphery, as well as a banking union.
Four years of deflation and a drawn-out banking crisis offer little prospect of economic stimulus.
So interest rates must thus be substantially increased to induce Greek savers to keep their deposits and thus stop the hemorrhage from the Greek banking system.
If nothing is done to stop the capital flight and reduce private domestic expenditure, the Greek banking system will become ever more dependent on “monetary” financing.
But any move of this kind would lead to a breakdown of the Greek banking system and, potentially, to massive contagion affecting Portugal, Spain, and Italy.
A default contagion would have brought down the banking systems of all the major industrial countries, and caused the world to relive something like the financial crisis of the Great Depression.
A truly competitive European banking system would provide incentives for the larger and stronger banks to take more risks in the hope of growing even larger and stronger.
Franklin Roosevelt was already taking vigorous action against the depression, and was trying to reorder the failed US banking system.
Many European countries cannot afford a stimulus package, owing to overstretched public finances, and instead want to make progress on the international regulation of banking.
Indeed, in the commercial banking sector, 41% of Hong Kong dollar claims on banks outside Hong Kong are to banks located on the Chinese mainland.
Reinvigorating the eurozone economy requires a more radical effort to resolve the interlinked sovereign-debt and banking crises.
Specifically, it demands sovereign-debt mutualization through Eurobonds, and thus the elimination of eurozone countries’ fiscal sovereignty, and a full-fledged banking union with recapitalization authority and shared deposit insurance – a far cry from the arrangement that has been agreed.
BackNext