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Lending in sentence

1319 examples of Lending in a sentence

For banks to start lending again, even more intervention may be needed.
One possibility is that they worry about borrowers’ credit risk, though this would have to be extremely high to justify the complete cessation of long-term lending.
But the many central bank lending facilities that have been opened around the world should assuage these concerns, especially for large and well-capitalized banks.
Anticipating the prospect of such future fire sales (of loans, financial assets, or institutions), it is understandable that even strong banks will restrict their lending to very short maturities, and their investments to extremely liquid securities.
For others, low prices would be a tremendous buying opportunity, whose prospective return far exceeds returns from lending today.
Any voluntary resumption of lending will necessitate reducing both fears and potential opportunities.
Both effects can lead to increased trade in illiquid assets today, and unlock lending, though this outcome may require significant government outlays.
One problem is that the public’s appetite for a bailout of the unregulated and hemorrhaging “shadow” financial system, consisting of institutions like hedge funds and private equity firms, is rightly small, yet it too can serve to hold back bank lending if a large proportion of the distressed assets are held in weak institutions there.
Unless the regulated financial system is systematically audited, with weak entities stabilized through capital injections, asset purchases, or mergers, or liquidated quickly, the overhang of distressed institutions will persist, constraining lending.
At the end of a recent discussion with Andy Haldane, the Bank of England’s Executive Director for Financial Stability and a member of the FPC, I asked: What happens if inflation is high and lending is low?
During the pre-crisis Great Moderation, restraining lending through regulatory tools probably would have worked, because it was unlikely to push the economy into deflation, as hiking interest rates would have done.
The current issue is that the monetary aggregate (M4) measure of lending to the private sector is at its lowest level in a decade, while inflation is more than double the BOE’s target.
If the FPC lowers capital requirements to encourage lending, but the MPC raises rates to cope with inflation, banks would face competing pressures.
Looser lending rules would conflict with the higher cost of money.
Again, such policies would have worked a decade ago, in an environment of low inflation and rapid lending growth.
But, as of now, there has been very little increase in such lending.
When global lending imploded, the most fragile borrowers were cut off first.
Thus, low interest rates make the problem go away, while the Bagehot rule – with its high lending rate for banks – would make matters worse.
The region has 23 million small- and medium-size enterprises (SMEs), accounting for roughly 90% of the private sector, but SMEs receive just 8% of total bank lending.
The Trouble with China’s Troubled-Asset ReliefBEIJING – Back in 2009, in the midst of the global recession, China’s government launched a massive economic-stimulus package that bolstered GDP growth by fueling a surge in bank lending.
Moreover, off-balance-sheet lending has helped to fuel over-investment in some sectors (especially infrastructure, iron and steel, energy, manufacturing, and real estate), leading to overcapacity and priming the economy for the emergence of bad-debt “disaster zones,” which would increase NPL ratios further.
But the Bank’s core philosophy has rested on lending, with interest, to middle-income countries and channeling the ensuing funds to the poorest countries eligible for assistance.
While lending is progressively thinned out and retained only for the poorest countries, the Bank must adopt the lean hub-and-spoke structure of a strategic consultancy or a “knowledge bank.”
The result will look familiar to aficionados of Japan’s banking crisis: zombie banks lending to zombie firms, which apply artificial pressure on viable firms, stifling their growth.
Given that the lending was denominated primarily in US dollars, it is subject to currency risk, adding another dimension of vulnerability to emerging-economy balance sheets.
But the extent of that lending is largely unknown, because much of it came from development banks in China that are not included in the data collected by the Bank for International Settlements (the primary global source for such information).
For example, data collected on a project-by-project basis by the Global Economic Governance Initiative and the Inter-American Dialog could provide some insight into Chinese lending to several Latin American economies.
For example, it seems that, from 2009 to 2014, total Chinese lending to Venezuela amounted to 18% of the country’s annual GDP, and Ecuador received Chinese loans exceeding 10% of its GDP.
Chinese lending to Brazil was closer to 1% of GDP, while lending to Mexico was comparatively trivial.
Indeed, business lending – particularly to small businesses – in both the US and Europe remains markedly below pre-crisis levels.
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