Sentences with phrase «nonbank financing»

The report also examines how the rise of nonbank financing has altered the impact of monetary policy and finds that fears of a decline in the effectiveness of monetary policy are unfounded.

For instance, Mishkin (2012:1 and 24) explains that «in our economy, nonbank finance also plays an important role in channeling funds from lender - savers to borrower - spenders... Finance companies raise funds by issuing commercial paper and stocks and bonds and use the proceeds to make loans that are particularly suited to consumer and business needs.»

Not exact matches

Many of these nonbank institutions have financed risky infrastructure operations, like copper and coal mines or other poorly constructed buildings, by using a variety of unusual financial instruments, said Louis Lau, director of Brandes Investment Partners» investments group.

Nonbank lenders are pulling ahead in small - business financing.

Big Banks Find a Back Door to Finance Subprime Loans: Lending to nonbank financial firms surges to record as banks avoid direct exposure

In recent years, about two - thirds of nonfinancial credit market debt has been held by nonbanks, which includes market - based funding by securitization vehicles and mutual funds as well as by institutions such as insurance companies and finance companies.

Among the top 40 lenders, nonbanks accounted for 37.5 percent of originations in 2014, up from only 7.5 percent in 2011, says Guy Cecala, publisher of Inside Mortgage Finance.