Visitors Now:
Total Visits:
Total Stories:
Profile image
By Tea with FT (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Daft regulators hinder the access to bank credit of “risky” SMEs, those who could most make low interests productive

Monday, October 24, 2016 0:24
% of readers think this story is Fact. Add your two cents.

(Before It's News)

Sir, Joel Tillinghast, with his letter, and Tony James with his opinion express well serious doubts on the validity of low interests “Low interest rates are leaving pension plans desperately underfunded” and “The Fed can revive the economy with higher rates” October 24.
I would add two comments to theirs. The first is that in my experience little introduces so much pressure to get a project fast to its revenue generating point as high interest rates. In the same manner, low interest rates, can cause project laziness.
The second, much more important, is that too many SMEs and entrepreneurs, and who would love to access those lower rates cannot do so. Since banks are required to hold more capital when lending to SMEs and entrepreneurs, on account of daft regulators thinking these borrowers constitute a risk to the stability of bank systems, they get no bank credit. All worsened by the fact that since banks become less profitable, bank capital itself becomes harder and harder to access. 
As to “alternative” financing sources for those “risky” actors desperate for an opportunity to invest, Tillinghast reminds us of “that low interest rates do not mean lower credit card or payday loan rates”.
@PerKurowski ©

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.