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Lending in sentence

1319 examples of Lending in a sentence

With so many banks in the US fragile, lending is likely to remain constrained.
It is not debt and deficits; and it is not dealing with the aftermath of irresponsible lending and borrowing.
Consider what happens when banks in Texas, Florida, or California make bad lending decisions that threaten their survival.
The fit would be particularly good in those countries where the Bank is already lending money.
In the 2017-2019 period, the World Bank’s portfolio of investment lending for land administration and security of tenure is projected to grow by 39%.
In order to avoid asset fire-sales – which would have led to the disorderly unraveling of private-sector balance sheets, possibly triggering a new “Great Depression” or even bringing down the eurozone – advanced countries’ central banks began to purchase risky assets and increase lending to financial institutions, thus expanding the money supply.
The “new normal” that results will likely include scarcer, more expensive long-term bank lending.
BEIJING – With the likelihood of a contagious sovereign-debt implosion and European bank failures greatly reduced by the Greek debt deal and the European Central Bank’s lending program, it is time to look ahead.
But, while doing so, they are not likely to be expanding private-sector lending to support economic growth.
European banks are far more thinly capitalized, and account for a much larger share of credit extended, than banks in the US, where much more lending originates in capital markets.
That generally transfers the deposits from the lending bank to another bank.
That made sense only if the bank used the reserves to back up expanded lending and deposits.
Essentially all of the increased reserves ended up being “used” to support increased commercial lending.
But, rather than being used to facilitate increased commercial bank lending and deposits, the additional reserves created in this process were held at the Fed – simply the by-product of the effort, via QE, to drive down long-term interest rates and increase household wealth.
Similarly, the move from a lending model of “originate and hold” to one of “originate and distribute” based on securitization led to a massive transfer of risk.
In the United Kingdom, banks have been criticized for not lending the reserves created by quantitative easing to the real economy, leading the Bank of England to introduce its “funding for lending” scheme in 2012.
Since 2011, the ECB’s analysis of weak eurozone growth has stressed the negative impact of an impaired and fragmented financial system, with high sovereign-bond yields and funding costs for banks resulting in prohibitive lending terms in the peripheral countries.
Despite the ECB’s own evidence, however, the policy focus remains on fixing the credit-supply problem, through the AQR and stress tests, and through the ECB’s own version of a funding for lending scheme, announced on June 5.
Lowering interest rates below zero, however, has hurt banks’ balance sheets, reducing their lending capacity.
Moreover, the crisis-related damage to banks’ balance sheets constrained demand by severely limiting household credit and lending to small and medium-size businesses.
So far, the IMF has reacted with newfound vigor, establishing a much-needed short-term lending facility, which may well need to be expanded if emerging markets come under greater pressure.
But nothing prevents the IMF from demanding policy commitments from regional bodies when lending to their member governments.
This practice has always impeded competition, distorted bank lending, and reduced economic dynamism; but it has helped autocrats preserve their power.
For starters, the separation of the IMF’s SDR account from its general account made it impossible to use SDRs to finance IMF lending.
The IMF would use those deposits to finance its lending operations, rather than having to rely on quota allocations or “arrangements to borrow” from members.
In the eurozone and Japan, taxing banks that hold reserves (negative-interest-rate policy) will also encourage more bank lending, and thus stimulate growth.
Governments, companies, investors, and individuals all need to shake off complacency and take a more disciplined approach to borrowing and lending to prepare for the end – or continuation – of QE.
The only thing we got wrong was how bad banks’ lending practices were, how non-transparent banks really were, and how inadequate their risk management systems were.
Bankers were once supposed to know every borrower, and to make case-by-case lending decisions.
Mass-production favors the growth of mega-banks, so, unlike the misjudgments of lending officers, these behemoths’ defective models have had disastrous consequences.
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