Quotes About Loans

regulate interest rates charged on bank loans.98

Making loans and fighting poverty are normally two of the least glamorous pursuits around, but put the two together and you have an economic innovation that has become not just popular but downright chic. The innovation - microfinance - involves making small loans to poor entrepreneurs, usually in developing countries.

During the past 30 years, European governments have provided more than $15 billion in the form of low- and no-cost loans to Airbus for the specific purpose of developing new aircraft lines.

Why do we have financial crises? Why do banks lose money? If history is any guide, it hasn't often been the result of speculative bets. It has been the result of banks making loans to individuals and businesses who can't pay them back.

The liabilities of the bank thus became its deposits (on which it paid interest) plus its reserve (on which it could collect no interest); its assets became its loans (on which it could collect interest).

Its prime cause was the rise and fall of 'securitized lending', which allowed banks to originate loans but then repackage and sell them on. And that was only possible because the rise of banks was followed by the ascent of the second great pillar of the modern financial system: the bond market.

Today, banking assets (that is, loans) in the world's major economies are equivalent to around 150 per cent of those countries' combined GDP.

Suddenly the people running Savings and Loans had nothing to lose - a clear case of what economists call moral hazard.

then resold their loans in bulk to Wall Street banks. The banks, in turn, bundled the loans into high-yielding residential mortgage-backed securities (RMBS) and sold them on to investors around the world, all eager for a few hundredths of a percentage point more return on their capital. Repackaged as collateralized debt obligations (CDOs), these subprime securities could be transformed from risky loans to flaky borrowers into triple-A rated investment-grade securities.

When making their loans, the bankers should have thought more carefully about how easily they could call back the money - essentially a question about the liquidity of the loan.

Credit was, quite simply, the total of banks' assets (loans).

As in Japan, therefore, Korea's tech companies emerged not from garages, but from massive conglomerates with access to cheap bank loans and government support.

This meant that when Germany defaulted on a series of loans in the early 1930s, Dillon, Read and its major partners had already taken their share of the spoils, while the smaller investors who had bought these bonds lost tens of millions of dollars.

During the 1980s, prudent New Deal rules concerning mortgage loans were repealed, allowing people to get home loans with too little money down and interest rates that would "adjust" to unaffordable heights. So during the 1980s, the average price of a house in America doubled.

But in a crony system, banks and government institutions grant loans to students they know are unlikely to ever pay back the loans. Schools charge increasingly higher rates because they know government will give students virtually unlimited student loan debt. This is the model America's political class has been building for decades.

Mortgage insurance stocks remained depressed through the end of 2012 amid lingering uncertainty as to whether they had sufficient capital to absorb losses on delinquent loans originated before the crisis. However, as house prices began to recover, losses started to decline.

Fannie Mae has traditionally only bought and sold mortgages. But when a loan held by the company goes into foreclosure, Fannie Mae gains ownership of the underlying property until it is resold to new investors.

Starting in late 2007, faced with acute financial market distress, the Federal Reserve created programs to keep credit flowing to households and businesses. The loans extended under those programs helped stabilize the financial system.

The US threatened to withhold badly needed loans to the Jewish state, an unconscionable move that is a permanent stain on the record of Bush.

As the United States has become an older nation, reverse mortgages have grown into a $20-billion-a-year industry, with elderly homeowners taking out more than 132,000 such loans in 2007, an increase of more than 270 percent from two years earlier.

Everyday people are graduating from universities with crippling debt, stifling their opportunity for financial mobility, that is what's broken with this country.

Ending up-front fees should make it far easier for all students to go to university as they will no longer have to pay up to /1,125 out of their loans at the start of each year. Student loans will also rise to meet average living costs.

Making loans accessible to millions of the previously unbankable customers is a noble goal. Getting them hooked to such loans isn't.

Speculations and loans in foreign fields are likely to bring us into war... The war-for-profit group has counterfeited patriotism.