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Banks are happier to lend against collateral.
"We can't sell it, we can't lend against it.
"We recognize that asset and will lend against it, whereas a bank will typically lend against a balance sheet asset".
Banks are almost always willing to lend against the security of property.
If it acts like the Fed, then it could lend against "real" or post-crisis value.
It also can lend against the collateral guaranteed by these governments.
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As one Asian regulator points out, even highly capitalised banks like lending against homes.
Banks had generated profits by issuing, underwriting or lending against mortgage securities.
First the European Central Bank and then the Federal Reserve intervened liberally, lending against good collateral.
No money will be lent against student or small-business loans this month.
The difference is that in the other two cases, the Fed saw itself as lending against reasonable collateral.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com