Their guarantees have distorted the lending market and helped push Germany's banking industry into its present sorry state.
On the face of it, banks are feeling the pinch, charging each other high rates in the interbank lending market.
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Lenders shy away from such high-cost mortgages only about 2, 400 such loans were made in 2011, a fraction of the lending market.
Though Bermudez admits that credit spreads have widened a bit, he maintains that the small-business lending market has been relatively stable.
This advantage distorts the lending market in many parts of continental Europe and is killing the profits of Germany's domestic banks.
The lending market is virtually shut down, according to analysts, as companies and banks wait on the sidelines until the market turbulence subsides.
The sub-prime lending market - worth billions of pounds - involves lending to people with poor credit records at an interest rate premium.
Despite a credit boom, which has seen a big increase in low earners' unsecured debt relative to their income, the doorstep lending market is flat.
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"The banks withdrew dramatically from the lending market, " Mr. Fellows says.
Despite this progress, however, too many families are suffering today because of a growing incidence of abusive practices in a segment of the mortgage lending market.
"We consider the informal lending market the most likely short-term time bomb for the Chinese economy, " Dong Tao, Asia economist at Credit Suisse, said in a recent report.
These ordinarily smart investors are still betting that Corus' exposure to the commercial real-estate lending market (one of its big businesses is arranging condominium loans) is prone to a stumble.
It steps into a gap to make funds available that might not otherwise be within the reach of these countries if there were only to go to the private lending market.
In China's underground lending market, the most sensitive indicator of credit conditions, kerbside rates have reached extortionate levels of as much as 6% a month (see our report from Wenzhou).
As securitisation dried up, so did the primary-lending market.
The ECB's latest survey of the euro zone's money market said aggregate turnover in the unsecured-lending market, which Euribor tracks, was down 36% on the year in the second quarter of 2012.
The size of the country's informal-lending market isn't clear, but economists say it plays a major role in bringing needed funds to small and midsize businesses, which account for roughly 80% of China's urban employment.
He cites a litany of other ills facing this country, including the impact of the collapse of the subprime lending market on the U.S. economy, as further reason to have no faith in our leaders.
The three banks that have recently left the rate-setting panel have pointed to business reasons like shifting internal priorities and what they describe as a shrinking in the bank-to-bank lending market as reasons for their departure.
One factor needs to be taken into account -- the survey was conducted in June and early July, shortly before global stock markets plunged in response to concerns over the U.S. lending market, notably loans to so-called subprime customers, seen as high risk.
They will decline in value, which will quickly make the Fed insolvent, and a further liability to the people of the US. So either the Fed sells the bonds and reduces bank reserves, further tightening an already tightening lending market, or it really weakens its balance sheet.
As growth stocks have become less appealing in this market, with many more investors becoming value investors instead, that change in the market as well as the lack of lending in the market would have made a Smart Balance IPO today difficult, Gluck says.
Seemingly the safest of all securitised corporate lending is the market for commercial paper.
The answer, according to documents in a lawsuit filed by Roberts last winter, is tricky legal maneuvering around California real estate law, predatory lending tactics and market manipulation.
BDC, each has over 100 employees dedicated to middle-market lending.
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KKR, for instance, has no track record in middle-market lending.
ECONOMIST: Public offerings are all the rage for private-equity firms
As the American mortgage market ebbs and flows, we have the duty to protect responsible lending in the housing market for borrowers, lenders, and everyone else who is engaged in the economic life of our country.
The Bank for International Settlements (BIS) argued in its recent annual report that huge growth in bank reserves was driving overnight-lending rates to zero, causing the market for unsecured overnight lending to atrophy.
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