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Equity in sentence

1327 examples of Equity in a sentence

Mere equity in public finance or in the eyes of the law is not enough if we don’t also consider the different starting points for individuals and groups in society.
Instead, up to now at least, the government has mostly been providing (high-interest) loans rather than engaging in massive equity buyouts.
For decades, these banks have been selling “foreign savings” to developing countries by lending at high interest rates and in a foreign currency, fueling the accumulation of massive amounts of foreign debt, which would often be converted into equity.
I wish – as the Fed does – that some way could have been found to make financial-sector equity holders bear an even larger share of the losses that are coming down the road than they have borne so far or are likely to bear.
The ECB, however, will have a harder time making the case for wealth effects, largely because equity ownership by individuals (either direct or through their pension accounts) is far lower in Europe than in the US or Japan.
Profit Sharing NowNEW YORK – At the British Labour Party’s annual conference in Liverpool this month, the shadow chancellor of the exchequer, John McDonnell, proposed a profit-sharing scheme that would grant workers equity in the firms where they are employed.
A better alternative is to address the problem with a scalpel, rather than an axe, by having the state grant workers equity, from which they can earn a supplementary income.
Taking a longer-term view of growth and accounting for social, economic, and environmental equity must be a top priority for the post-2015 development agenda.
Some banks took action and raised equity through rights issues, sometimes with substantial help from governments.
Moreover, it is potentially a wealth transfer from taxpayers to private shareholders, because under new banking rules government bailouts are possible after bondholders have covered (bailed in) 8% of a bank’s equity and liabilities.
We estimate that if European regulators had adopted this approach and forced banks to stop paying dividends in 2010 – the start of the sovereign debt crisis in Europe – the retained equity could have paid for more than 50% of the 2016 capital shortfalls.
Moreover, China’s banking system remains the primary channel for the deployment of the household sector’s savings, meaning that those savings fund corporate investment through bank lending, rather than equity financing (which accounts for only about 5% of net investment).
A second option is to issue more equity.
The banking system is the wrong channel for allocating resources to high-growth, high-risk sectors, which should hold equity as risk capital.
But last year’s A-share debacle – when a price rout drove the government to suspend trading in more than half of A-share companies – underscored how difficult it is to build a strong equity market when the investment culture and tax system remain tilted toward debt.
The sooner China rebalances from debt to equity, the better off it will be.
Last year, ADB economist Juzhong Zhuang highlighted the contrast between the “growth with equity” that characterized the transformation of the newly industrialized economies in the 1960’s-1970’s and recent experience.
This would be the case as long as the banks’ losses remained smaller than their equity capital.
A true loss would be inflicted on a bank’s creditors only if the write-off losses on toxic mortgage loans exceeded the bank’s equity.
Indeed, if, as some believe, only a fraction of the banks’ equity is at risk, the potential debt-equity swaps would be minuscule.
Spanish banks have 7% equity capital on average on their balance sheets.
And, even if the banks’ private depositors, whose claims are 39% of the aggregate balance sheet, were excluded, the debt-equity swap necessary to compensate for a loss of up to 100% of the equity would be less than 12% of the creditors’ investment volume.
My recent study with Jacopo Carmassi, Time to Set Banking Regulation Right, shows that by permitting excessive leverage and risk-taking by large international banks – in some cases allowing banks to accumulate total liabilities up to 40, or even 50, times their equity capital – the Basel banking rules not only enabled, but, ironically, intensified the crisis.
First, capital requirements should be set as a straightforward ratio of common equity to total assets, thereby abandoning all reference to banks’ own risk-management models.
Finally, solvency rules should be complemented by an obligation that banks issue a substantial amount of non-collateralized debt – on the order of 100% of their capital – that is convertible into equity.
These debentures should be designed to create a strong incentive for bank managers and shareholders to issue equity rather than suffer conversion.
Yet were we to take intergenerational equity seriously, the leading factor to consider is that future generations will have better technologies than what we have today.
Of course, equity ownership in Russia is narrow; most Russians do not even follow market indices.
At the same time, they held an average of $88 million in their firms’ equity and options.
So it seems unlikely that this up-front cash provided much of an incentive for the average CEO to knowingly take bad or excessive risks that would jeopardize their much larger equity stakes.
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