In the aftermath of Asia's crisis, Bank guarantees helped to speed up countries' return to the capital markets.
Under a currency board arrangement, the central bank guarantees the redemption of all notes in circulation at a set exchange rate to the dollar or another foreign currency or basket of currencies.
The vast expansion of Fed lending, Treasury capital injections into banks and Federal Deposit Insurance Corporation bank-debt guarantees are producing results.
Dravko Pudvarsachov(ph), who immigrated to Belgium from fellow EU nation Bulgaria, says he began to feel better after EU leaders came together to raise bank-deposit guarantees across the continent.
The Fed has also recorded a handsome profit on its emergency-lending programmes to healthy banks, as did the Treasury on its purchases of mortgage-backed securities and, so far, the Federal Deposit Insurance Corporation on bank-loan guarantees.
Last year the government started to offer guarantees for bank loans to small- and medium-sized companies.
Part of the lure: The prospect for lining up financing from Japanese government-affiliated lenders and private bank loans with state guarantees.
Some argue that these guarantees make bank failures more likely, because they encourage depositors to be indifferent to the riskiness of banks' lending.
Globally some of the liquidity conditions that supported risk appetite, including central bank policies such as guarantees and quantitative easing, show no signs of being removed.
Eurocrats say they first want all 27 members of the European Union to adopt the same procedures for bank resolution and deposit guarantees (with arrangements for cross-border co-operation).
Government support for recovery and reconstruction is expected, and guarantees for new bank borrowing will be a critical element in the support.
Recent turmoil has made the Bank keener than ever on guarantees.
As important as Export-Import Bank credits, government investment guarantees and other U.S. subsidies potentially provided for by this accord might be, by conveying to Tokyo, Bonn and other Western capitals a sort of U.S. "Good Housekeeping" seal of approval, Washington also encourages others who may have still "deeper pockets" to move aggressively to assist the Soviet economy with taxpayer funds.
The Irish government provided guarantees to the Central Bank of Ireland that these loans to the state-owned IBRC would be repaid.
At least the investors had those guarantees from a Swedish bank, right?
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To keep borrowing costs from exploding, municipal borrowers sought big bank letters of credit as backstop guarantees on the shorter than they wanted variable-rate demand obligations they turned to.
The package - which also includes guarantees of inter-bank lending - is designed to restore financial stability and to encourage the resumption of more lending to business and to people who want mortgages.
At a late stage Mr Geithner rejected the idea of a government-run bad bank (as well as blanket guarantees for noxious assets), put off by the high upfront cost and the problems it would have valuing the debt.
And the mortgage-related asset guarantees offered to Citibank and Bank of America were worth tens of billions of dollars more.
Bank of America was in a position to buy Merrill Lynch in part because the Federal Deposit Insurance Corporation, which guarantees deposits, insulates a large share of the bank's funding from crises of confidence.
The expense-cutting push is risky, Brown says, because of the complexity of the bank's operations and the lack of guarantees that cutting costs in the middle and back offices will fix things long-term.
The old shareholders will get the equity in the bad bank. (In any restructuring, bondholders should do better than equity.) And the FDIC minimizes its risk because it guarantees the deposits in the good bank.
The more risk a bank takes, the greater the value of government guarantees and potential bailouts.
Because it is providing loans or loan guarantees, the funders of the green bank can be repaid.
This year it went further and gave guarantees to Bear Stearns, an investment bank with no retail depositors.
Anglo Irish Bank is reportedly planning to enforce 2bn euros in loan guarantees given by businessman Sean Quinn.
"It is totally unacceptable for bank bonuses to be paid on the back of taxpayer guarantees, " he told the Guardian.
The plug was finally pulled when Bank Handlowy, then a state-owned bank, refused to lend the yard any more money without state guarantees.
Sweden's prime minister, Fredrik Reinfeldt, said Monday that the country would guarantee bank deposits and was considering raising the threshold of deposits eligible for guarantees.
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