Sheets
in sentence
728 examples of Sheets in a sentence
This temporary collapse has shaken public confidence and endangered the balance
sheets
of Ukrainian banks and companies that have hard-currency debts.
The bold policy action that countered the initial disorder prevented a global depression, but it encumbered public-sector balance
sheets.
Accordingly, even countries with sound balance
sheets
and manageable leverage have experienced a growth slowdown.
Sadly, most American households are still far from recovery on the asset side of their balance
sheets.
So, even in the throes of a financial crisis, banks and non-financial firms can continue to borrow if their balance
sheets
are sound, uncontaminated by the “sovereign risk” of their state government.
So the real problem in Europe is not that Spain or Ireland has borrowed a lot, or that too much Spanish and Irish debt sits on banks balance
sheets
elsewhere in Europe.
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.
Furthermore, the effect of internationally agreed regulatory reforms – most of which have yet to be implemented – will be to increase banks’ capital requirements while shrinking the scale of maturity transformation risks that they can carry on their balance
sheets.
With the time afforded by the ECB’s three-year cheap loans, they have some breathing room to rebuild their capital and clean up their balance
sheets.
As a last resort, the government could step in, as it did in the late 1990’s and early 2000’s, to remove NPLs from banks’ balance
sheets.
The credibility of Europe’s national supervisory agencies has been irreparably damaged in recent years, owing to financial stress tests that gave clean bills of health to institutions – Laiki Bank of Cyprus and Bankia of Spain, among others – whose balance
sheets
were later found to have enormous holes.
If the ECB is the eurozone’s lender of last resort, Europe’s leaders agreed, it must have direct knowledge of its potential clients’ balance
sheets.
This situation is largely the result of predictable post-crisis economic dynamics, as firms and households in advanced countries repair their balance
sheets.
Lowering interest rates below zero, however, has hurt banks’ balance sheets, reducing their lending capacity.
Meanwhile, asset purchases have caused the balance
sheets
of major central banks to swell to unprecedented levels.
It strengthens banks’ balance
sheets
by reducing the volume of non-performing loans.
Similarly, the more that recovery and sustained growth strengthen banks’ balance sheets, the less urgency policymakers feel to address structural shortcomings, such as the implicit guarantees enjoyed by state banks and municipal savings banks in Germany, and the problems of family-controlled banks like Banco Espirito Santo in Portugal.
Moreover, the crisis-related damage to banks’ balance
sheets
constrained demand by severely limiting household credit and lending to small and medium-size businesses.
Member countries could borrow at practically the same interest rate as Germany, and banks were happy to earn a few extra pennies by loading up their balance
sheets
with the government debt of the eurozone’s weaker economies.
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.
This combination potentially weakens financial, household, and government balance
sheets.
Banks’ balance
sheets
would receive an immediate boost, as would the heavily indebted countries’ budgets.
In today’s circumstances, the financial system would have been better off if some version of US Treasury Secretary Henry Paulson’s original plan to purchase toxic assets and take them off banks’ balance
sheets
had been realized.
The gamble has been that a solid, durable recovery would enable banks and households to rebuild their balance
sheets
quickly enough to avoid the need for additional bailouts.
Moreover, many central banks’ balance
sheets
have expanded to record levels, although in different ways and for different rationales – further underscoring the experimental character of the monetary easing now underway.
This is because “[h]ouseholds also have made some progress in repairing their balance
sheets
– saving more, borrowing less, and reducing their burdens of interest payments and debt.”
Or should the recovery be used to clean up wobbly banks’ balance sheets, by bundling their NPLs and selling them at a discount?
In order to restore confidence among savers and investors, it will have to find a solution to clear banks’ balance
sheets
of NPLs, which are undermining credit, making capital more expensive, and thus acting as a drag on the economy.
Eurozone leaders must recognize that spending cuts will do nothing to stabilize the balance
sheets
of core-country banks that are over-exposed to peripheral countries’ sovereign debt.
Finally, banks that take losses as a result of these restructurings will need to have their balance
sheets
reinforced.
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