Lender
in sentence
215 examples of Lender in a sentence
First, and most obviously, Europe already has its own in-house
lender
of last resort.
The implicit preferred-creditor status is based on central-bank practices that establish that the
lender
of last resort is the “last in and first out.”
If you invest in a conventional (non-crypto) business, you are afforded a variety of legal rights – to dividends if you are a shareholder, to interest if you are a lender, and to a share of the enterprise’s assets should it default or become insolvent.
The International Monetary Fund and the World Bank can serve as
lender
of last resort to emerging markets at risk of losing market access, conditional on appropriate policy reforms.
To make the European Central Bank a
lender
of last resort for all of the euro-zone countries, for example, would give distressed European governments some added breathing space.
Likewise, if the perceived creditworthiness of the government is shaken, then intervention from some outside
lender
of last resort might be essential for either the second or third cure to work.
It should become a catalytic
lender
whose participation in eurozone programs remains desirable but not indispensable – giving it the possibility to disagree and walk away.
This would allow her to write down the value of her mortgage by the average house-price depreciation in her postal zone since the borrowing date, in exchange for giving the
lender
a share of the future house-price appreciation.
At the moment, the United States Treasury can borrow at a real interest rate of zero for five years – and shove the entire five-year inflation risk onto the
lender.
Likewise, they now recognize that bailout loans that give the new
lender
seniority over other creditors worsen the position of private investors, who will simply demand even higher interest rates.
This raises the issue of the need for an international
lender
of last resort to provide liquidity in the event of a global credit crunch.
Although the IMF is the closest that the international financial system has to such a lender, in the crises of 1997-98 its resources were stretched to the breaking point.
First, Europe now has a true
lender
of last resort.
If the Scots want sovereignty, they will need their own currency – and their own central bank: no British
lender
of last resort would be available to Scotland’s banks.
Third, his claim that preventing the ECB from acting as a
lender
of last resort imposes a high price – making governments vulnerable and reducing their fiscal space – contradicts the tenet that the central bank must not provide support to government borrowing.
The record-high percentage of “covenant-lite” new loans (lacking many basic protections for the lender) further attests to excessive risk-taking.
More importantly, the ECB is de facto the
lender
of last resort, while foreign banking systems are sharply reducing their exposure to risks abroad.
Unlike most monetary authorities, the European Central Bank cannot act as a
lender
of last resort, which, together with the absence of common bonds (Eurobonds), induced large-scale speculation on member states’ national debt, reflected in widening interest-rate spreads.
The first run on a bank occurred against the British mortgage
lender
Northern Rock.
In the old days, when borrowers found it impossible to make their payments, mortgages would be restructured; foreclosures were bad for both the borrower and the
lender.
What is needed is a financial circuit breaker, in the form of a transitional
lender
of last resort.
The type of determined intervention designed to prevent the run-up in bond yields may not be forthcoming, owing to a concern within the eurozone core, led by Germany, that unconditional, aggressive action by a
lender
of last resort would undercut the incentive – and hence the political will – to undertake the required reforms.
But it lacks those tools, especially a Treasury with powers to tax and borrow, and a central bank that can act as
lender
of last resort to its member banks.
All that has kept the much-vaunted font of global capitalism from sliding into cataclysm is the US government, which has effectively become the guarantor and
lender
of last resort.
When the US Federal Reserve was created in 1913, its most important function was to serve as a
lender
of last resort to troubled banks, providing emergency liquidity via the discount facility.
If stability is to be preserved, financial markets need regulators and a
lender
of last resort.
But there can be no
lender
of last resort without a modicum of moral hazard.
Brazilian bonds would rally and confidence would return at the sight of a
lender
of last resort.
According to this doctrine, debt incurred by “odious” regimes should not be enforceable, because the
lender
should have known that the debt was incurred without the consent of the people or for their benefit.
During the 2008 global financial crisis, the Fed served as de facto global
lender
of last resort, agreeing to unsecured swap lines not only with reserve-currency central banks like the ECB and the Swiss National Bank, but also with emerging economies like Mexico and Brazil.
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