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That will make it more difficult to repay loans.
In this schema, debt-laden firms and consumers rush to repay loans as credit dries up.
In companies with physical assets, creditors can demand that they be sold to repay loans.
Addressing borrowers' ability to repay loans has been the focus, Mr. DeMarco said.
There has always been a moral, as well as a financial, obligation to repay loans.
The Chinese are finding it harder to repay loans because the economy is slowing.
But many banks could face sizable risks if borrowers failed to repay loans.
This threat to European banks has already prompted anxiety about their ability to repay loans.
The legislation also provides money to repay loans for nursing school.
The assets are often new developments and land belonging to developers who failed to repay loans.
NEC will use the money to increase capital spending and investments and to repay loans.
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