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    #1

    “credit off-off-balance-sheet”

    "In trying to prevent off-balance-sheet lending, regulators may push credit off-off-balance-sheet." http://www.economist.com/node/18118975

    What does "push credit off-off-balance-sheet" mean here?


    Does it mean "regulators may raise banks' leverage of lending to allow them to lend more money (posted in the balance sheet) to each other to prevent off-balance-sheet lending (or shadow banking activities)?"


    Your help will be appreciated.
    Last edited by michael147; 18-Aug-2013 at 23:47.

  1. konungursvia's Avatar
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    #2

    Re: “credit off-off-balance-sheet”

    It's about unofficial loans using state bank money, awarded to friends without proper collateral or credit checks, and/or without proper record-keeping. "Off-off" is a phrase I couldn't see in the article at the time I viewed it. Maybe it was an error that has been corrected.

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    #3

    Re: “credit off-off-balance-sheet”

    Quote Originally Posted by konungursvia View Post
    It's about unofficial loans using state bank money, awarded to friends without proper collateral or credit checks, and/or without proper record-keeping. "Off-off" is a phrase I couldn't see in the article at the time I viewed it. Maybe it was an error that has been corrected.
    It is in the article. Para.6. "off-off" is a double negative?

  2. probus's Avatar
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    #4
    The double negative is intentional and correct. Whereas up to now these loans have been off-balance-sheet, that is, not shown on the firm's balance sheet, now they may be forced off that status, in other words onto the balance sheet where they belong in the writer's opinion.
    Last edited by probus; 19-Aug-2013 at 03:41.

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    #5

    Re: “credit off-off-balance-sheet”

    Quote Originally Posted by probus View Post
    The double negative is intentional and correct. Whereas up to now these loans have been off-balance-sheet, that is not shown on the firm's balance sheet, now they may be forced off that status, in other words onto the balance sheet where they belong in the writer's opinion.
    Thank you. I get it now.

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    #6

    Re: “credit off-off-balance-sheet”

    Your appreciation is welcome but there is no need to write a new post to say thank you or to quote our replies back to us. Simply click on the Like button on any posts you found helpful. It means that we don't have to open the thread again to read your new post and then find that it doesn't include any new information or an additional question.




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    #7

    Re: “credit off-off-balance-sheet”

    Quote Originally Posted by probus View Post
    The double negative is intentional and correct. Whereas up to now these loans have been off-balance-sheet, that is, not shown on the firm's balance sheet, now they may be forced off that status, in other words onto the balance sheet where they belong in the writer's opinion.
    I think it may mean something different- in trying to stop off-balance-sheet lending, they may not achieve the aim of bringing the loans onto the balance sheet as people may seek other sources of credit - the unregulated lenders - so the loans go further off the radar.

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    #8

    Re: “credit off-off-balance-sheet”

    Quote Originally Posted by Tdol View Post
    I think it may mean something different- in trying to stop off-balance-sheet lending, they may not achieve the aim of bringing the loans onto the balance sheet as people may seek other sources of credit - the unregulated lenders - so the loans go further off the radar.
    I agree. I think the first hyphen is a mistake:

    In trying to prevent off-balance-sheet lending, regulators may push credit off (= way from) off-balance-sheet."

  4. probus's Avatar
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    #9
    Having (belatedly) read the whole piece I agree with Rover, Tdol and 5jj. Off-off here means even farther off. If I were the editor of The Economist I would have changed the phrase for clarity.

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