Lender
in sentence
215 examples of Lender in a sentence
If no
lender
of last resort ensures that credit is available at or below 10%, Brazil cannot be expected to meet its obligations - dealing a terrible blow both to Brazil and the international financial system.
Perhaps more important, it would have no
lender
of last resort capable of stabilizing the banking and financial system in a crisis.
As the current crisis has demonstrated yet again, capitalism needs stabilizing arrangements such as a
lender
of last resort and counter-cyclical fiscal policy.
The eurozone was established without a fiscal transfer mechanism to succor members of the family who get into trouble; the European Central Bank is prohibited from acting as
lender
of last resort to the banking system; and the Commission’s proposal for Eurobonds – collectively guaranteed national bond issues – has foundered on Germany’s objection that it would bear most of the liability.
If a country that has been borrowing like a drunk suddenly sees its credit dry up, it will tighten its belt – raise taxes, cut spending, or do both – with or without an international
lender
of last resort.
When saving exceeds investment, the result is a current-account surplus, and the economy becomes a
lender
to the rest of the world.
Indeed, even doubling its initial investment will not give China a majority stake in the world’s newest multilateral
lender.
We recognized that large bubble-driven losses in assets held by leveraged financial institutions would cause a panicked flight to safety, and that preventing a deep depression required active official intervention as a
lender
of last resort.
Ideally, the ECB would also be given a mandate to act as a
lender
of last resort for illiquid but solvent governments.
The continent’s agricultural sector is further hindered by low skills, a dearth of innovation, weak infrastructure, little funding, and lack of access to land, land titles, and
lender
security.
Indeed, the UK is now a fringe player in deciding a European growth strategy; marginal to trade debates that it used to lead; and, despite being a big lender, almost irrelevant to the future of Greece.
But it does not have automatic access to a European
lender
of last resort.
For example: the seller of a car may know more about his car than the buyer; the buyer of insurance may know more about his prospects of having an accident (such as how he drives) than the seller; a worker may know more about his ability than a prospective employer; a borrower may know more about his prospects for repaying a loan than the
lender.
But in a financial crisis, weakened banks cannot lend, meaning that the government must serve as the
lender
of last resort.
Under EMU, there will be no longer be Spanish or Swedish central banks with the credit-granting authority to be
lender
of last resort.
My guess is that the ECB is not an effective
lender
of last resort, because it will face too many internal obstacles to quick action.
The combination of a banking sector squeeze with a paralyzed or ineffective
lender
of last resort is a potentially very dangerous combination.
But, in both cases, the
lender
was distant and anonymous.
In exchange for this flexibility, the
lender
receives a share of any capital gain that is realized when the home is sold.
China, the world’s growth superstar, has a huge current-account surplus, which means that it is a net
lender
to the rest of the world.
As Summers again knows full well, when Peter Orszag, the head of the Office of Management and Budget at the beginning of Obama’s first administration, and I analyzed the risks of mortgage
lender
Fannie Mae in 2002, we said that its lending practices at that time were safe.
(Even then, notwithstanding the right-wing canard blaming Fannie Mae and the other government-sponsored lender, Freddie Mac, it was private-sector lending, especially by the big banks, that underlay the financial crisis.)
But there is a contrary moral attitude, the essence of which is that, whereas excessive debt is to be deplored, the blame for it lies with the lender, not the borrower.
“Neither a borrower nor a
lender
be,” Polonius admonished in Hamlet.
The last legal restrictions on taking interest on money were lifted only in the nineteenth century, when they succumbed to the economic argument that lending money was a service, for which the
lender
was entitled to charge whatever the market would bear.
Short-term pressures will always be present, but they can be overcome with the proper tools: improved pricing of environmental risks, climate-sensitive credit ratings, environmental
lender
liability, and efforts to mitigate the environmental risks to financial stability.
As
lender
of last resort, the Fed deserves great credit for stepping into the breach during a wrenching crisis.
But it also creates uncertainty and delay, and prevents the ECB from acting as a true
lender
of last resort.
For now, there is no Islamic global reserve currency and no
lender
of last resort.
Economists have long understood that, in the absence of a credible
lender
of last resort, banks are vulnerable to self-fulfilling confidence crises.
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