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Evidence shows banks that complied with federal mandates to lend in underserved communities "experienced lower delinquency rates and less risky lending".
Similarly, ring-fencing resources, developing new funds, altering staff incentives, and creating mandates to lend in this market would all encourage Bank staff to invest in this space and help turn around the Bank's failing grade.
Similar(58)
They are often starved of desperately needed loans; that's why we need public investment banks with a specific mandate to lend the self-employed cash.
Under the Turnbull government's new policy Arena will co-manage a new Clean Energy Investment Fund set up underneath the CEFC, with a mandate to lend to earlier stage and slightly riskier projects, and generate a slightly lower rate of return.
Instead of using them to ensure the credit kept flowing to small businesses, or breaking them up into a series of smaller banks with a mandate to lend to businesses on a long-term basis, the Treasury took a hands-off approach, hoping desperately for a quick turnaround.
By official directive, the bureau's fake publications and letters were mandated to include "appropriate misspellings and poor grammatical construction so as to lend authenticity".
As a result, while the Obama administration will encourage the banks to lend, top officials say they do not want to issue mandates.
Hodge noted that when Northern Rock was split in 2009 and the "good bank" given a mandate to start lending it failed to achieve its goal.
Writing about RBS, of which the government owns 82%, Mr Cable said: "My suggestion is that we recognise that RBS will not return to the market in its current shape and use its time as ward of state to carve out of it a British business bank with a clean balance sheet and a mandate to expand lending rapidly to sound business".
Banks are keen to lend.
Banks are hesitant to lend.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com