The government would save financial firms by taking over bad loans by the billions of dollars.
It would have few qualms about pushing the burden of bad loans on to the taxpayer.
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This happened now, when everybody is awake to the problems that can result from bad loans.
Our idea was to take hundreds of their bad loans and turn themm into participating loans.
The plan would stabilize local property values and simultaneously remove bad loans from bank balance sheets.
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Banking regulators frown on this behaviour, as it is often used to disguise bad loans.
Bad loans are one of things that got us into this mess in the first place.
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Furthermore, consumer credit is becoming scarcer as banks anticipate a rise in bad loans.
And the first-half losses at some banks were caused by stiff provisions for bad loans.
With super-low interest rates, it costs banks almost nothing to carry their bad loans.
They see house prices still falling and bad loans rising and regions needing financial support.
Meanwhile, after aggressive efforts to clean up bad loans, that drain on profits has been stemmed.
They have relied on windfall bond profits to help write off their bad loans.
Bad loans, it notes, increased by a median 7% in the second quarter of this year.
Mr Schrantz says that this year it has added bad loans faster that it has provisions.
It set up a pair of agencies quickly to recapitalise banks and help restructure bad loans.
Worse, structural reform and a write-off of banks' bad loans may only intensify deflationary pressures.
Many universities are now saddled with large debts that are likely to turn into bad loans.
Like in Spain, bad loans in the banking system are at the heart of Slovenia's economic woes.
But the approach could be risky: Foreclosing on bad loans requires more legwork than buying homes directly.
The FHA uses the premiums it collects to pay banks the cost of bad loans they insure.
That means banks' bad loans have to be hived off, their cost borne painfully by the taxpayer.
Worse, rather than writing their bad loans off, Japanese banks have merely written most of them down.
The banks have hired western consultants to teach them about risk-management systems, credit-scoring and tackling bad loans.
The results were also boosted by the release of funds that Citigroup had set aside for bad loans.
The NPL ratio, the size of bad loans against total lending, fell to 0.9% from 1% in December.
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Deep concern over bad loans to unprofitable heavy industry held by the government is not merited, he said.
This centralized bad bank would take the FDIC off the hook for a lot of banks' bad loans.
Because reform will put a stop to a lot of the bad loans that fueled a debt-based bubble.
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South Korea and Sweden owed their relatively robust recoveries to policies to remove bad loans from banks' balance-sheets.
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