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Banks don't lend reserves, and they don't need reserves in order to lend.
These must be addressed in order to lend credibility to the policy's environmental ambitions.
In effect, the I.M.F. is borrowing from some countries in order to lend to other countries.
Banks are in essence middlemen (or "financial intermediaries") that borrow in order to lend.
Yet what was the device I had decided upon in order to lend a verisimilitude to this particularly deranged tale?
Borrowing at 3percentt in order to lend at 2percentt is not a recipe for curing financial ills.
Similar(20)
Banks were ordered to lend only to credit-worthy developers.
With Chinese banks ordered to lend, and government agencies ordered to buy and invest, the health of the broader economy was far harder to measure.
The government recently scrapped that essential tool of the command economy, the credit quota, and state banks have been "ordered" to lend only on commercial merit.
Finally, state banks have been "ordered" to lend according to strictly commercial criteria and to private companies.During their waking moments, selective listeners at the NPC heard intentions to redouble the reform efforts.
If it faced an economy-wide credit crunch, the government would (as it has in the past) simply order banks to lend more.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com