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ECB Gets Serious about Non-Performing Loans
US businesses traditionally relied on bond and equity markets to raise capital. When the crisis struck, the US acted early and quickly to re-open market functions before the banks were prepared to expand their lending. The European and Japanese models of capital distribution are less market-oriented than the US and traditionally rely more on bank loans. A bank's decision is binary. One gets the loan or not. The markets have capital for anyone, even enterprises that are well below investment grade. The markets dicker about the price of the capital not usually the availability. As is well appreciated, the bank-centric ... (full story)