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The banks have pledged to increase credit, introducing new mortgage programs and announcing a push to expand commercial lending.
President Michelle Bachelet said $500 million would enable Chile's state-owned BancoEstado to increase credit for qualifying businesses.
"If unemployment continues to increase, credit card net charge-offs could exceed historical norms," Gary L. Crittenden, Citigroup's chief financial officer, said.
It immediately pushed some interbank borrowing costs to fresh lows, although analysts noted it had yet to be seen if the banks would turn around and increase credit to corporate customers.
Policy makers are trying to revive lending after previous reductions failed to increase credit flows, threatening to stall an export-led recovery that has been fueled by an 82percentt surge in the price of Urals crude oil this year.
"We are seeking to find more opportunities to put this learning into practice and have been particularly encouraged by the interest from regional development agencies and local authorities who are seeking to increase credit union services in their areas".
Similar(39)
He would extend the income-tax exemption to all families making less than $25,000 a year and increase credits for those between $25,000 and $30,000.
In the current election, both candidates promised to increase credits for impoverished peasant farmers, raise government spending for education and health care and create more jobs.
The Chinese government can lower interest rates and the required reserve ratio to increase credits to support investments.
"One wonders whether they're shy about increasing credit balances".
A.China, despite the slowdown, is growing, so there is increasing credit growth.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com