Liabilities
in sentence
442 examples of Liabilities in a sentence
Countries like to keep their reserves growing in tandem with growth in imports and other foreign
liabilities.
If these
liabilities
grow by 10% annually, countries need to set aside an additional $160 billion.
Treasury recognizes, albeit implicitly, that no bankruptcy court can deal with the complex globally interconnected
liabilities
of JPMorgan Chase, Citigroup, Goldman Sachs, or other bank holding companies with over $500 billion on their balance sheets.
The current cohort of Republican governors offers similarly innovative state-level solutions – for example, on spending, debt, and unfunded pension and health
liabilities
– as models for the country.
Governments that guarantee bank liabilities, however, must then also demand that bankers exercise more prudence than they might on their own.
The expansion of the state’s control of the Russian economy has been driven by a proliferation of state-owned corporations, whose gross
liabilities
now amount to 150% of GDP.
Overnight, the foreign euro
liabilities
of Greece’s government, banks, and companies would surge.
Meanwhile, many advanced economies have suffered considerably from their balance-sheet composition, with limited, poorly measured assets and outsize debt and non-debt
liabilities.
In any case, China should also reduce costly foreign
liabilities.
Research is needed to ensure that nanomaterials, and the industry that produces them, evolve as environmental assets rather than
liabilities.
In part, this drop reflects the reduction in market value of the existing
liabilities.
Though economies are currently favoring path B, it is path A that would produce higher, more inclusive, and more sustainable growth, while also ameliorating the lingering debt overhangs associated with large sovereign debt and non-debt
liabilities
in areas like pensions, social security, and publicly funded health care.
Many firms are able to renegotiate financing terms with their creditors – typically extending the maturity of their liabilities, which enables them to borrow more to finance new, better projects.
If such negotiation cannot be achieved voluntarily, US firms can use Chapter 11 of the bankruptcy code, under which a court supervises and approves the reorganization of
liabilities.
A generalized run on the banking system has been a source of fear for the first time in seven decades, while the shadow banking system – broker-dealers, non-bank mortgage lenders, structured investment vehicles and conduits, hedge funds, money market funds, and private equity firms – are at risk of a run on their short-term
liabilities.
Countries with large current-account deficits and/or large fiscal deficits and with large short-term foreign currency
liabilities
have been the most fragile.
When the $200 billion rescue of these firms was undertaken and their $6 trillion in
liabilities
taken over by the US government, the rally lasted one day.
Some sectors or firms – especially those that rely heavily on imports, such as US retailers – would face sharp increases in their tax liabilities; in some cases, these increases would be even greater than their pre-tax profits.
Meanwhile, the highly indebted emerging economies would face ballooning dollar liabilities, which could cause financial distress and even crises.
Because their currencies are not widely used internationally, many of their bank
liabilities
are in euros.
In small countries, where a significant share of bank
liabilities
is in someone else’s currency, the national central bank lacks this capacity.
And global investors continue to exit the eurozone in droves, shifting countries’
liabilities
to taxpayers and the ECB’s balance sheet.
Persistently low interest rates have been particularly challenging for pension funds, which face rising
liabilities
(calculated on a discounted basis).
A large-scale program to reboot America’s crumbling infrastructure would go a long way toward addressing this gap between assets and liabilities, providing pension funds with investments with long time horizons (and thus guaranteeing the incomes of tomorrow’s retirees) while leveraging private capital for the public good.
Rather than estimate the economic value of banks’ assets – what the assets would fetch in a well-functioning market – and the extent to which they exceed liabilities, the stress tests merely sought to verify that the banks’ accounting losses over the next two years will not exhaust their capital as recorded in their books.
As long as banks are permitted to operate this way, the banks’ supervisors are betting on the banks’ ability to earn their way out of their current problems – even if the value of their assets doesn’t now significantly exceed their
liabilities.
But doesn’t the banks’ ability to raise new equity capital indicate that, regardless of whether the stress tests are reliable, investors believe that their assets’ value does significantly exceed their
liabilities?
Consider a bank with
liabilities
of $1 billion.
Although the value of the bank’s assets doesn’t exceed its liabilities, depositors won’t flee as long as the government backs the bank by guaranteeing its deposits.
The only alternatives to an IMF program are an inflationary spiral to dilute the real value of debt and other nominal liabilities, or a downward economic spiral that may cause a need for debt restructuring.
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