That made her part of the underground lending system, a general term that encompasses informal lending networks, private investors, loan sharks and others.
That engendered a housing bubble, which was nourished by the complete abdication of lending standards in the banking system.
Speculating about what might be the effective standard at an exam is counter-productive to the social desire of having more lending occur in the system, and also discourages the commitment of additional capital to the banking system.
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Regulators worry that letting one or two strong banks repay risks turning the weak into targets and takes lending capacity out of the system.
It directly reduces the size of the monetary base and the funds available to the banking system for lending.
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While no one wants to file for bankruptcy protections on student loans (or any other type of loan for that matter), their removal from student loans has clearly caused a systemically predatory lending system the likes of which this country has never seen, and has also enabled the intolerable tuition inflation already mentioned.
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He is widely expected to undertake aggressive action that may include "open-ended" asset-purchase programs designed to push bond yields down, boost the supply of money in the banking system and spur lending to businesses.
Rather than injecting the funds straight into the banking system, Spain's rescuers are lending them to the government.
Under QE, the Bank injects new money into the financial system to try to boost banks' lending, and in turn the wider economy.
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The problems will shrink from now on as the less generous lending of 1999-2000 works its way through the system.
In contrast, the macroprudential supervisor would recognize that, for the system as a whole, excessively conservative lending policies could prove counterproductive if they contribute to a weaker economic and credit environment.
Throughout this financial market turmoil, our focus has been to stabilize the system and support the lending that is vital to our economy.
The idea was that a refreshed financial system would start lending to businesses, which in turn would generate the exports needed for a sustainable recovery.
Toward that end we've taken steps to strengthen the capital position of our financial institutions, to stabilize the system and to enable them to increase lending to American consumers and businesses.
Since Japan is struggling to free itself from a banking crisis caused partly by widespread connected lending (thanks to the system of corporate groups known as keiretsu, today's variant on the zaibatsu), Mr Ochi's preferences seem most peculiar.
Ten years ago branch networks were decided by the Bank of Italy, the central bank, lending was tightly regulated and two-thirds of the banking system was in the hands of central or local government.
Tim Geithner, my incoming Treasury Secretary, reported that the financial system, shaken by the subprime crisis, had halted almost all lending, which in turn threatened to pull the broader economy in a downward spiral.
He also likes the fact that during 2008 and 2009, when the financial system was severely tested, peer-to-peer lending held up to the stress.
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With no bailouts, it is the soundest system in the world, marked by a steady and responsible continuation of lending and profits.
Still, the crisis made it painfully clear that the world's banking system needed new international rules to impose lending discipline and guard against any temptation to migrate to the weakest regulatory regime.
Last January, the Fed started lending through its term auction facility twice a month in order to flood the financial system with cash.
But most of all, the banking system needs to be recapitalised for lending to resume.
Mr Osborne argued that state guarantees on lending were meant to help stabilise the system, not reward bankers.
And the banking system is much healthier now than in the 1980s, when financial liberalisation spurred reckless lending.
The reviews will look at the central bank's emergency-lending operations in 2008-09, its inflation-forecasting record and the system for providing money to banks.
That's five years since banks started to worry about lending to each other - and the global financial system started to seize up.
Mr. LEONHARDT: Well, the way the financial system works, there's money moving around all the time, so banks are constantly lending money, not only to consumers but also to each other in order to shore up positions or move money around to different investments.
Once banks start lending again and expanding base money through the fractional reserve system, M2 could increase exponentially.
But even if we do everything right on that, we've still got to deal with what we just talked about, the financial system, and making sure that banks are lending again.
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