Example collocations logo

Banking in sentence

2429 examples of Banking in a sentence

Inadequate financial regulation left Americans vulnerable to predatory banking behavior and saddled with enormous debts.
In his recent speech to the annual, elite central-banking conference in Jackson Hole, Wyoming, the Bank of England’s Andy Haldane made a forceful plea for a return to simplicity in banking regulation.
Haldane rightly complained that banking regulation has evolved from a small number of very specific guidelines to mind-numbingly complicated statistical algorithms for measuring risk and capital adequacy.
As Haldane notes, even the celebrated “Volcker rule,” intended to build a better wall between more mundane commercial banking and riskier proprietary bank trading, has been hugely watered down as it grinds through the legislative process.
In practice, helicopter money can look a lot like quantitative easing – purchases by central banks of government securities on secondary markets to inject liquidity into the banking system.
The most obvious example of this is finance and banking, where former employees of a single firm, Goldman Sachs, hold some of the most senior regulatory and monetary positions – and not just in the United States.
The Treaty of Rome, which established the common market back in 1957, did not distinguish between state-owned and private enterprises, though vast sectors of the economy (most of the coal and steel industry, and in many countries banking) were in state hands at the time.
America, too, historically had problems as a single-currency area, from early chaos before the Constitution to the clash between agricultural and banking interests over the gold standard in the late nineteenth century.
The eurozone countries must first deal with the sovereign-debt crisis, reduce their fiscal deficits, and strengthen the woefully undercapitalized banking system.
The scope of risk management will need to be expanded, so that long-term sustainability and risks from climate change are included in prudential rules for banking, insurance, and investment.
At the Jackson Hole conference, Paul McCulley of PIMCO, the world’s largest bond fund, argued that in the past month or two we have been witnessing a run on what he calls the “shadow banking system,” which consists of all the levered investment conduits, vehicles and structures that have sprung up along with the housing boom.
The shadow banking system, which is beyond the reach of bank regulators and deposit insurance, fed the boom in home prices by helping provide more credit to buyers.
The cushion would minimize the risk of a future banking crisis.
The second thing that must happen is that eurozone leaders and parliaments, with the cooperation of the courts, must be seen to push ahead with institutional reforms to establish not only the ESM, but also a banking union and partial debt mutualization.
So far, the strategy of maintaining banking systems on feeding tubes of taxpayer-guaranteed short-term credit has made sense.
But it soon turned out that the managers had little time to spend on Nordbanken’s core banking business, because they had to focus disproportionately on handling an enormous variety of assets.
A series of policy actions – the creation of a rescue fund, a fiscal treaty, and the provision of cheap liquidity to the banking system – had failed to impress financial markets for long.
In June 2012, eurozone leaders announced their intention to establish a European banking union.
The euro, they said, had to be buttressed by transferring banking supervision to a European authority.
Second, an agreement on authorizing the ECB to oversee the banking sector was reached at the end of last year.
One problem is architectural: any banking union is only as strong as its weakest component.
This type of rule could insulate governments from banking risk only if applied systematically, even at the expense of financial stability.
Indeed, the worsening banking crisis, with deposits fleeing from the eurozone periphery, is further strangling Europe’s growth prospects.
As a result, shadow banking, which provides capital at triple the cost implied by the official base interest rate, is flourishing – and generating significant uncertainty and risk.
Although the government recently attempted to attract capital back to the official banking sector by eliminating the lending rate’s lower bound, more substantial reform is needed – and that will likely have to wait until the interest rate on deposits is fully liberalized and the financial sector is open to private banks.
German Banks on TopCHICAGO – Overcoming the European Union’s current economic malaise, as almost everyone acknowledges, requires deeper integration, with the first step taking the form of a banking union supervised by the European Central Bank.
But Europe’s banking union also requires uniform rules for winding up insolvent financial institutions – and this has become a sticking point.
Until now, the main exception was banking.
The emerging banking union is not only the first step toward a European fiscal union; it is also the final step toward completing the European common market.
In principle, the EU’s banking rules are common to all member states.
BackNext