A number of states have started programs to lighten the health care burden on small businesses through tax credits, pooling mechanisms and insurance regulation.
The draining of the credit pool is already having a visible effect.
At the opposite end of the spectrum, weaker banks will face a double whammy of higher costs and a deteriorating credit pool as their best customers migrate to competitors.
Merrill's index of bonds rated CCC or lower — the very bottom of the credit pool and indicating a substantial risk of default — has gained almost 75percentt in 2009, adjusted for inflation.
Loans are underwritten by a credit pool supplied by a mix of asset managers and family offices, who take more than half of all earnings from the loan book, Lynch said.
Too many will mean a large available credit pool, which means you're in danger of over-extending yourself.
The idea goes back decades, to a time when small retailers, which needed to offer credit, pooled information on which customers were good and bad payers.
IN 2004 and 2005, senior executives at the bank, including Robert E. Rubin, Citi's influential director, urged it to become more actively involved with in-vogue areas like structured credit, pools of securities backed by different assets, and commodities.
In addition, super credits, manufacturer pools and credits for eco-innovation and tolerances and flexibilities of the European test cycle (NEDC) can further weaken the effectiveness of the envisaged targets.
Mike and his team also support several microfinance village savings and loans associations (VSLAs), enabling people in the community to access financial credit by pooling their resources.
