When will the White House and the Federal Reserve stop the bank credit crunch that is hurting an already anemic economy?
The cash took the form of either banknotes or a credit balance at the Federal Reserve bank that held the collateral.
In its third-quarter credit policy review, the Reserve Bank of India left the bank rate at 6% and the key lending rate, which was cut as recently as Jan. 2, at 5.5%.
Not only did the insurer turn a profit in 2011, it also repaid a credit facility from the Federal Reserve Bank of New York and managed to give the Treasury a clear path toward exiting its investment, the CEO continued.
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While bankers said that the CRR hike is unlikely to impact banks' prime-lending rate, the Reserve Bank of India has revised its forecast of bank credit growth downwards from 18% to 16%.
The congressmen want the Federal Reserve, the Federal Home Loan Bank Board and the National Credit Union Association to define unfair lending practices and mandate ways to prevent them, as the law states.
China's benchmark lending rate is slightly positive but this understates the extent of its recent monetary tightening: the central bank has also sharply raised banks' reserve requirements and capped credit growth.
The Federal Reserve America's central bank has got much of the credit for ensuring that last year's recession was mild, and with the interest-rate cut announced last month it has demonstrated its willingness to try to nudge the recovery along as much as it can.
According to the Federal Reserve, only about one-third of small-business applications for bank lines of credit were approved in 2009.
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The committee noted approvingly that the Federal Reserve Bank of New York has been pushing industry players to create a central clearinghouse for credit default swaps and other derivatives.
Earlier this year, in a survey by the Federal Reserve Bank of Boston in January 2010, nearly 45% of respondents said their unpaid credit card balance had declined in the past 12 months.
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In addition, several of the world's central banks, including the U.S. Federal Reserve and the European Central Bank, took the unprecedented step of synchronizing interest rate cuts to kickstart credit markets.
With a Reserve Bank of India policy rate of 6%, and lending rates around 8.5%, credit is extremely cheap.
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Inflation in Brazil was largely the result of credit demand from consumers which was tackled with high interest rates and bank reserve requirements and quantitative easing in the US which was like throwing suitcases of money into a field of wind turbines.
Despite several rate cuts by the Federal Reserve, and additional efforts by the central bank to pump cash into the banking system to ease the credit crunch, banks are still finding the need to raise additional capital by either slashing their dividend, as National City Corp. did last week, or selling stakes to outside investors.
Despite several rate cuts by the Federal Reserve, and additional efforts by the central bank to pump cash into the banking system to ease the credit crunch, banks are still finding the need to raise additional capital by either slashing their dividend, as National City Corp. (nyse: NCC - news - people ) did last week, or selling stakes to outside investors.
And it is widely predicted that the central bank will soon announce measures to curb credit growth by increasing the ratio of bank deposits that must be kept with it in reserve.
Thursday, Federal Reserve chairman Ben Bernanke warned of coming bank failures and the need for banks to raise capital to keep lending amid the credit crunch.
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