Banking
in sentence
2429 examples of Banking in a sentence
Most important, while state subsidies in all other sectors are forbidden, they are commonly accepted in
banking
– not only explicit subsidies, such as Germany’s bailout of several Landesbanks after the American subprime-mortgage crisis, but implicit subsidies as well.
But this approach would not only leave German taxpayers on the hook; it would also create perverse incentives in the entire European
banking
system, maximizing instability.
In this sense, the
banking
union is not a scheme to burden German taxpayers with the losses of failed southern European banks; rather, it is a mechanism to render all banks (including German ones) accountable for their own mistakes, thereby reducing the burden that they impose on domestic taxpayers.
Either the eurozone moves toward a different equilibrium – greater economic, fiscal, and political integration, with policies that restore growth and competitiveness, including orderly debt restructurings and a weaker euro – or it will end up with disorderly defaults,
banking
crises, and eventually a break-up of the monetary union.
The Greek
banking
system’s solvency and access to refinancing would be hit severely.
QE Turns TenNEW HAVEN – November 2018 will mark the tenth anniversary of quantitative easing (QE) — undoubtedly the boldest policy experiment in the modern history of central
banking.
The current financial crisis offers a perfect example, as it was poor governance in the
banking
sector that brought so many of the world’s great economies to their knees.
Every week more liquidity is injected into the global
banking
system by the United States Federal Reserve and the European Central Bank.
The reason is that healthy spending and production no longer depend only on the soundness of the
banking
system and public confidence in its stability.
Nowadays, the
banking
system is much larger than the set of institutions formally called “banks” that are intensively regulated by central banks and treasuries.
UBS, the Swiss
banking
group, prices a standard basket of 111 goods and services in various cities around the world.
The assumption that the German economy will accelerate out of its current crawl is essential to confidence in Europe’s financial safety net, and to a
banking
union that credibly shares risks across the eurozone.
This growing aversion to risk makes it particularly difficult for SMEs to borrow from commercial banks, forcing them to turn to the under-regulated shadow
banking
sector.
The European Central Bank would contain the collateral damage by flooding Europe’s
banking
system with liquidity (against subpar collateral).
For example, Turkey’s 2001 financial crisis stemmed mainly from the lack of an effective regulatory and supervisory framework for the
banking
sector.
The development and implementation of the Basel III
banking
standards are essential to introducing countercyclical capital buffers and additional loss absorbency for these institutions.
Regarding the
banking
sector, stress tests have been applied since 2004, and a target capital-adequacy ratio of 12% has been maintained since 2006.
After the devastating impact of the crisis on their economies, countries hosting Western
banking
subsidiaries and branches cannot be expected to accept the status quo .
But the rapid expansion of credit brought about by foreign financial intermediaries using various channels (including direct lending, lending via
banking
subsidiaries, and lending via leasing subsidiaries) has fueled asset booms and heightened exposure to foreign-exchange risk.
The best way to protect cross-border
banking
and financial integration in Europe would be to establish an effective EU-wide regulator and supervisor, or, even better, a global institution that could monitor the home country-host country relationship.
Even more important was a decision, taken in the hope of choking off funds to extremist groups, to require all expatriate Pakistani earnings to be remitted through official
banking
channels.
It follows from the second major tenet of Islamic finance that if people adhered strictly to its ethical requirements, there would be fewer moral-hazard problems in Islamic
banking.
She also backed the formation of a
banking
union, which remains incomplete but still represents a key step toward a financial system supervised by the European Central Bank.
But just how extensive – and how risky – is shadow
banking
in China?
The term “shadow banking” gained prominence during the subprime mortgage crisis in the United States to account for non-bank assets in the capital market, such as money-market funds, asset-backed securities, and leveraged derivative products, usually funded by investment banks and large institutional investors.
In 2007, the volume of shadow-banking transactions in the US exceeded that of conventional
banking
assets.
Chinese shadow
banking
totals only about $2.2 trillion.
Shadow
banking
in China is dominated by lending to higher-risk borrowers, such as local governments, property developers, and SMEs.
Thus, the real issue in China is not the volume of shadow credit, but its quality, and the
banking
system’s capacity to absorb potential losses.
Market forces and policy conflicts triggered shadow banking’s emergence in China.
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