GSEs not lending as much as they appear to be – NY Fed paper
Much of enterprises’ loans to “real economy” are in fact financed by other types of institution
The share of lending to the “real economy” from government-sponsored enterprises (GSEs) is much less than it appears, research from the Federal Reserve Bank of New York has found.
The paper, published on May 12, looks at how much GSEs directly lend to activities in the real economy and how such lending is underpinned by complex financial interconnections.
“The modern financial system is complex, with funding flowing not just from the financial sector to the real sector but within the financial
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