By making the lenders whole, they encourage more careless lending and fresh crises.
Such bailouts will only encourage excessive lending in the future, this argument goes.
He would encourage new lending by international organizations and private banks if countries would introduce policies that emphasized free markets instead of state control.
The means the government might use to encourage added lending to hurricane victims is uncertain.
Under this approach, banks are given a range of choices to encourage continued lending.
The reason: the officials believe that low short-term rates have already encouraged too much lending, giving stimulus to an economy that no longer needs it.
Bankers said that lower interest rates and legal reforms would encourage lending.
The Germans have been cutting rates to encourage lending and growth while lowering the value of their currency.
So, yes, it was the Government that allowed and encouraged excessive lending.
Fed officials believe that low short-term rates have already encouraged too much lending.