Exact(2)
American money-market funds, which were a big source of dollars for the European banking system, have reduced loans by more than 40% over the past six months.Banks are reluctant to lend to one another except for the shortest possible time, usually overnight.
The bank noted that results were flattered by comparison to the year-earlier period, when a sovereign debt crisis in Greece and other countries had a significant effect on results of European banks, as American money market funds reduced loans to the region.
Similar(54)
Actions taken in 2005, 2006 and 2007 greatly reduced loan originations and market share.
Scandinavia's biggest bank, Nordea, said second-quarter profit almost quadrupled as it reduced loan losses and sold properties.
At the same time the Federal Housing Administration and Veterans Administration, which guaranteed residential mortgages, raised down-payment requirements and reduced loan limits.
Bank of America, for instance, says it has waived late fees, lowered interest charges and, in some cases, reduced loan balances for more than 700,000 credit card holders in 2008.
GMAC said its turnaround was based on significantly reduced loan loss provisions, increased stability in auto credit trends and continued efforts to reduce the bad mortgage assets on its books.
Although innovations have reduced loan defaults, most MFIs are losing money.
He thinks Citi's first quarter earnings report will show similar increases in fixed income trading and reduced loan loss reserves like the other banks who have already reported their first quarter earnings– Bank of America and JPMorgan.
LEAP has also had an impact on debt repayments and reduced loan holdings, particularly among female headed households.
"But the government is coming up with various measure to reduce loans to households".
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