One potentially alarming trend is banks pulling back consumer credit lines, says Oppenheimer analyst Meredith Whitney.
Revolving credit lines are part of a typical financing plan for most banks' corporate customers.
Much of it could be from previously extended credit lines that are now being drawn down.
If credit lines could pre-empt crises of illiquidity, that still leaves the problem of insolvency.
But then came the shock of 2008 when the markets collapsed and credit lines contracted.
Business credit cards also generally have higher credit lines than do personal credit cards.
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However, the Target 2 system is a processing platform that funds outstanding credit lines.
Asset-based lending and factoring got attention when banks slashed credit lines in the 2008 financial collapse.
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The next is to convince foreign banks to restore their short-term credit lines to Brazil.
In its frantic final days, MF drew down its credit lines, leaving many banks exposed.
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Foreign banks have not increased their credit lines to healthy Japanese banks, let alone weaker ones.
Another is to encourage contingent arrangements with foreign banks that guarantee limited credit lines in advance.
Banks have jacked up the price for back-up credit lines, when they offer them at all.
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As a result, these cards typically carry higher interest rates and lower credit lines than general-purpose cards.
And they get an 18-month increase in their credit lines from the Treasury, should they need it.
During South Korea's financial collapse, the banks agreed, after pressure from governments, to restructure short-term credit lines.
After the Hong Kong stockmarket collapsed on October 20th, bankers began to cut off its credit lines.
In January, some small-business borrowers at Bank of America were asked to repay their credit lines in full.
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They are pulling back credit lines to shore up their borrowing base, reducing exposure and living off fees.
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Indeed outsiders could go further, by putting pressure on international bankers not to pull all Brazil's credit lines.
In recent weeks, Duke Energy, Gannett, FairPoint Communications and General Motors drew existing credit lines in a defensive move.
And the lifeline provided by home-equity loans is increasingly constricted, as damaged banks cut back on pre-arranged credit lines.
Subprime borrowers are also seeing credit lines easing in the auto loan arena.
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It has been seeking new credit lines since last December and trying to raise money from capital markets abroad.
Now that they have merged, credit lines are being amalgamated and cut back.
The desire to repay debt is certainly important, but extending credit lines we can afford to pay back is important too.
Additionally, with each fuel market swing, budgets and credit lines are stretched, limiting the capital businesses need for operations and growth.
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In particular, governments could turn to them for credit lines for small and medium companies now threatened by the credit drought.
Already the FDIC's available funds, including untapped credit lines from the Treasury, are equivalent to just 1.5% of total commercial-bank deposits.
But they must abide by Federal Reserve Board rules barring the use of the credit lines for purchasing or carrying margin stock.
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