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But Mr. Siegel said that as he started to dig deeper, he found a provision that would increase loan guarantees for Small Business Administration lenders.
Still, the ECB has to be seen to be doing something, and it is hard to see how a cut in rates, presumably associated with some other measures to increase loan flow, could do any harm.
He said that appraisals that indicate a property's value has declined often force banks to take write-downs, charge-offs and increase loan loss reserves, all of which drain bank capital and, in extreme cases, can lead to bank failures.
Senator Richard J. Durbin, Democrat of Illinois, called on the inspector general of the Education Department to investigate whether companies that lend to students have engaged in inappropriate activities by offering inducements, like gifts or cash payments to universities and their officials in an effort to increase loan volume.
Bonus tax can increase loan quality if the tax rate is sufficiently large.
The company took a $271 million charge to increase loan provisions and write off uncollectible fees and said loss rates for its riskiest loans could reach 20%.
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"Banks are being challenged to further increase loan-impairment coverage levels for real estate assets, while complying with stringent capital requirements.
According to a recent survey by Deloitte, a big accounting firm, the new method is expected to increase loan-loss provisions by around half.
REMITTERS SELL FRANCS Caillaux Wants Only Discretionary Authority to Increase Loans -- July Maturities Not Feared.
Under the treaty normalizing relations, Japan would provide capital for South Korean industrialization and increase loans, investment, and trade.
He added that Fannie Mae would increase loans to minorities, to $700 billion through 2009, a $280 billion increase over $420 billion promised in 1999, when he took over the corporation.
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