And without their ability to create credit in this way, we'd all be a lot poorer.
Given that it is the banks that create credit and thus the wider money supply they are, to a great extent, the same thing.
Whalen says there is a risk the contagion will spread further and create more credit quality problems for banks.
The financial cost of atonement threatens to seriously deplete their capital and undermine their ability to create the credit essential for economic recovery.
It said the biggest single danger was that the weak economy would create further credit losses at banks, eroding their profitability and the capital cushions that they have built up over the last two years.
Put simply, in the absence of such incentives, the risk-averse funding that banks thrive on wouldn't be available to allow banks to create sprawling credit portfolios impossible for regulators or investors in the marketplace to assess.
These all help create a credit score.
FORBES: How to Teach Your Kids to Become Financially Independent
And, as I mentioned yesterday, one possible remedy would be to force the banks to raise so much additional capital that they would feel under enormous pressure to create new credit, so that they could earn an adequate return on this capital.
While these cards do provide some measure of flexibility, their ambiguous credit limits create the potential for consumers to exhaust all of their available credit and for cards to be declined unexpectedly.
FORBES: The Pitfalls of No Pre-Set Spending Limit Credit Cards
But shadow minister Stephen Timms said the government had failed to heed warnings about the time needed to create the Universal Credit system.
Like equity analysts, Keenan's staff of 24 do bottom-up research, monitoring and modeling free cash flow estimates to create their own credit ratings for borrowers.
As part of its "know before you owe" campaigns, the CFPB has launched commonsense initiatives on mortgage disclosure forms and student aid agreements, and as Jay just mentioned, today they're launching a new initiative to create a model credit card agreement that is shorter, clearer, and explains terms up front.
Take it away from them, but leave them the power to create money and control credit, and with a flick of a pen they will create enough to buy it back.
FORBES: Is The Federal Reserve Using Money-Laundering Techniques To Cleanse Banks' Balance Sheets?
Studios collect the credit, create some temporary jobs while shooting for a few months, then beat it back to Tinseltown.
People who have jobs and homes they can afford will start spending and investing again--and create reasonable opportunities for credit.
Hedge funds also buy the potentially toxic waste that banks create when they bundle credit derivatives into so-called synthetic deals.
Mr. DUNCAN: Does the existence of credit help create ID thieves?
Part of the answer to the current SME funding crunch may lie in a greater role for equity finance and increased consolidation to create more robust, credit-worthy companies.
Finances are a part of life (much like death and taxes) and being financially savvy becomes increasingly important as we age because it can create opportunities to extended credit lines, secure loans and guarantee better interest rates as we seek to attain our goals in life, such as renting an apartment.
FORBES: Financial Tips To Keep Your Apartment Search On Track
On this view, providing cheap credit to small businesses could never create a recovery, and the flow of credit to these businesses will only start to gush as and when the economy is independently recovering (perhaps, the likes of Vince Cable would say, when government increases its own spending on infrastructure - or when Britain's customers in the eurozone start to spend again).
We want to lower the transaction costs, find new ways of establishing credit history and create opportunities for exit rounds.
Our unprecedented actions to stimulate growth and restart the flow of credit will help create jobs and prosperity within our borders and within yours.
The committee noted approvingly that the Federal Reserve Bank of New York has been pushing industry players to create a central clearinghouse for credit default swaps and other derivatives.
Mr Spitzer's office, meanwhile, is looking into whether Gotham Partners Management Company, an American hedge fund, took positions in credit derivatives to create the impression that companies on which it held a bearish view were in financial danger.
Ms. Quinn's plan would, through state legislation, create a new city tax credit for affordable housing developments and require developers who receive the subsidy to renew the below-market rate aspects of their buildings every 30 years, at the city's request.
Daschle's proposals outlined Friday call for a tax credit for businesses that create new jobs.
We know that an economy built on reckless speculation, inflated home prices and maxed-out credit cards does not create lasting wealth.
The merchant banks would extend credit but would not create money.
As retailers and credit-card issuers create fresh ways for gift cards to be personalized and delivered, shoppers plan to spend more than they ever have on these no-fuss presents.
FORBES: Gift Cards Will Be The Hot Holiday Present As Mobile Cards Gain Popularity
应用推荐