Sentence examples for rely on collateral from inspiring English sources
When the SMEs default on the loan commitments, banks usually rely on collateral to recover the money invested in a particular business (Falkena et al., 2001).
He further justified this pessimism by means of a thought experiment concerning "radical translation": a linguist is faced with the task of translating a completely alien language without relying on collateral information from bilinguals or other informants.
Traditional financial institutions tend to do very little screening for small borrowers and rely excessively on collateral (Stiglitz and Weiss 1981; Ang et al. 1995; Avery et al. 1998; Manove et al. 2001).
In that context, firms and their creditors avoid filing for bankruptcy by heavily relying on mortgage collateral, which can be repossessed and liquidated in the event of default.
These issues involve sometimes difficult trade-offs between the treatment of borrowers facing distress and the potential harm to future borrowers who will find their access to credit constrained if lenders cannot rely on the security of collateral or the sanctity of contracts.
Businesses and other institutions, which often rely on Treasury bonds as collateral to secure loans from banks, might begin to find it more difficult to afford credit.
Many rely on their houses as their main collateral.
THE second area where investors must rely on institutions to do the right thing involves the collateral that has been supplied to secure derivatives contracts.
The decision has been strongly criticised by researchers and activists as "counterproductive" and cause "collateral damage" to the communities who rely on Facebook as their only means of communicating online.
Instead, he said central banks should rely on tools like requiring banks to hold more capital and demanding traders hold more collateral.
