Lender
in sentence
215 examples of Lender in a sentence
That
lender
can be monetary or fiscal, and in Greece both types are in doubt.
The Federal Reserve Board is no longer the
lender
of last resort, but the
lender
of first resort.
And many Arab countries viewed it as the
lender
of last resort.
Pessimists claim that in the absence of well developed local financial markets and a global
lender
of last resort, emerging economies remain vulnerable to a sudden stop in capital flows.
Of course, all such worries would be dispelled if the International Monetary Fund or some other entity would serve as a fast and effective global
lender
of last resort.
It led to the IMF being viewed as a
lender
of last resort, a function it was not equipped to perform.
Judgment Day for the EurozoneMUNICH – Europe and the world are eagerly awaiting the decision of Germany’s Constitutional Court on September 12 regarding the European Stability Mechanism (ESM), the proposed permanent successor to the eurozone’s current emergency lender, the European Financial Stability Mechanism.
Indeed, in recent years, eurozone authorities have introduced several policies for fighting financial crises – including government-backed rescue funds, a partial banking union, tougher fiscal controls, and a role for the European Central Bank as
lender
of last resort.
In the case of a risk-off, emerging markets and advanced-economy financial sectors with massive dollar-denominated liabilities will no longer have access to the Fed as a
lender
of last resort.
Indeed, the EIB lends more to the energy sector than to any other, except transport (and its €72 billion total loan portfolio in 2010 made it a bigger
lender
than the World Bank).
And Greenspan eschews paternalism: he would not assume the role of a regulator telling people that they cannot buy a house even though a
lender
is willing to finance it.
A better approach would be to regulate individual banks, branches, and even loans, while limiting the Fed’s interventions to those that serve its original purpose of ensuring an adequate monetary base and acting as
lender
of last resort during panics, like the 2008 financial crisis.
Some even embraced the argument of the US libertarian Ron Paul, blaming the very existence of the Federal Reserve as a
lender
of last resort.
The European Monetary Union acted as a powerful catalyst for European integration, rapidly bringing together 17 diverse economies in a single monetary union – but without fiscal solidarity, a way to enforce fiscal discipline, or an established
lender
of last resort.
Heedless of its responsibilities as an emergency lender, it had allowed the banking system to collapse.
Of course, some of the pessimism arises from the weakness of Europe, which has agreed only that the European Central Bank be
lender
of last resort; and some stems from recognition of the limits of quantitative easing.
China quickly became Sri Lanka’s leading investor and lender, and its second-largest trading partner, giving it substantial diplomatic leverage.
Given the advantages of having more than one emergency
lender
and multiple sources of international liquidity, this can only be a good thing for the rest of the world.
Unlike most central banks, the ECB cannot act as a
lender
of last resort, which, in conjunction with the absence of common bonds (Eurobonds), induced large-scale speculation on intra-European national debts.
The absence of a
lender
of last resort in today’s world only magnifies the threat involved in each crisis.
But it will not be big enough to dispel convertibility risk and hence demonstrate the ECB’s credibility as a
lender
of last resort.
Thus, the ECB is founded on rules that prevent it from serving as
lender
of last resort.
Eurozone authorities may claim that a Greek exit no longer poses a systemic risk, given the introduction in recent years of various instruments for fighting financial crises, including government-backed rescue funds, a partial banking union, tougher fiscal controls, and the European Central Bank’s new role as
lender
of last resort.
The ECB’s refusal to be a
lender
of last resort forced the creation of a surrogate institution, the European Financial Stability Facility.
But the leaders of Parliament also believed that the absence of a codified authority to act as
lender
of last resort would not keep the Bank of England from doing so when necessity commanded.
A prudent
lender
should have considered these facts before making the loans.
But, unlike banks, they do not have the safety net implied by central banks’ role as
lender
of last resort.
Outside the advanced countries, there is a view that the world will return to pre-crisis conditions, with a stable US that functions as borrower, lender, and consumer of last resort.
Later, Maurice Obstfeld pointed out that, in addition to fiscal transfers, a currency union needs clearly defined rules for the
lender
of last resort.
Obstfeld had in mind a bailout mechanism for banks, but it is now abundantly clear that one also needs a
lender
of last resort and a bankruptcy mechanism for states and municipalities.
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