Ideally, commercial banks need to get into the business of long-term lending to companies.
How much additional long-term lending could go to Britain's family-owned companies and their ilk?
For the Fund and the Bank, the IFIAC urges virtually an end to their long-term lending activities.
But medium- and long-term lending has also increased strongly, suggesting that the government's stimulus package has started to kick in.
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Dexia, which used short-term funding to finance long-term lending, found credit drying up as the euro zone debt crisis worsened.
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She agreed to strengthen the role of the European Investment Bank, an EU long-term lending institution that finances research and development projects and infrastructure.
Because the core business of banking is taking in money at short-term interest rates and lending it back out at long-term interest rates.
Second, new products can be innovated, such as providing long-term financing to cooperatives, addressing working capital needs, and developing on-lending schemes to finance group members.
Venture capitalists make money in the long term by lending their names and expertise to start-ups.
And yet, Chrysler managed to insert just enough of its vehicles and brands in each spot so as to make their inclusion seem part of the fabric of the paean, not at all intrusive, thereby lending the kind of authenticity to Ram and Jeep that fuels long-term brand success.
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On the consumer banking side, a more normal yield curve would benefit banks like Morgan Stanley due to a better lending environment as banks can borrow short-term rates and lend long-term.
The theory is that higher shortterm rates inhibit lending and investment, helping to precipitate the slowdown, while the low long-term rates anticipate a later cooling of demand for borrowed money.
Banks have little incentive to make money the old-fashioned way (by lending) if they can lazily tap the Federal Reserve for free money and then buy long-term U.S. Treasurys yielding 3.5%.
Probably then the ECB will step in with its long-awaited couple of hundred billion - which is already out there in the marketplace and just needs to be unleashed as long term rather than short term lending.
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