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The reserve ratio was tightened throughout 2010 and 2011 after a huge government stimulus program of bank lending set off a bubble in real estate prices.
Hints that banks may slow lending set off alarms late last week, and analysts said it was becoming increasingly hard to gauge how swiftly Chinese officials and those of other developing nations would move to pre-empt inflation, which could slow the global recovery.
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As we've painfully learned, banks can over-lend and even set off an economic collapse.
The proposal is part of a sweeping blueprint to overhaul the nation's hodgepodge of financial regulatory agencies, which many experts say failed to recognize rampant excesses in mortgage lending until after they set off what is now the worst financial calamity in decades.
It was an early signal that deceptive lending practices, which would later set off a wave of foreclosures, were widespread.
The law cracked down on the opaque derivatives market, loose lending standards and other problems that set off the financial crisis.
And if anxious banks stop lending to one another, that could set off a Lehman-style global crisis, which has caused unease in Washington about the exposure of the American financial system to European debt.
Wells Fargo sidestepped some of the worst lending practices that emerged before and eventually set off the US financial crisis and Great Recession.
The offering, which was heavily oversubscribed and sold just before the market turbulence set off by the home-lending crisis in the United States, could be regarded as a sort of redemption for Mr. Schimmelbusch.
Our final chapter, The State of Lending in America and Its Impact on U.S. Households: Cumulative Costs of Predatory Practices shows lending abuses are inter-related and that they set off chain reactions that have long-term consequences, derailing economic opportunity for millions of Americans and weakening the U.S. economy.
Her high cheekbones not only set off a strong jaw but lend her face an ethnically indecipherable cast.
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