Enriquez said there had been a low compliance to the agri-agra law, which required banks to allocate 25 % of their total loanable funds to agriculture and agrarian sector.
32.
The law requires all private banks and other lending institutions to set aside 8 percent of their loanable funds for small and medium enterprises for the next 10 years.
33.
By contrast, the loanable funds doctrine does not equate savings and investment, both understood in an " ex ante " sense, but integrates bank credit creation into this equilibrium condition.
34.
Some dlrs 500 million will be used to increase the loanable funds of the state-owned Development Bank of the Philippines, which was set up to provide financing for small businesses.
35.
"The bank's board of directors has decided to reserve 75 percent of the bank's loanable funds for small farmers, " the state-run Associated Press of Pakistan reported . ( ids)
36.
The move, to take effect on Monday, Sept . 25, will create NT $ 65 . 3 billion ( $ 2 . 4 billion ) of loanable funds, the bank said.
37.
The second criticism is that savings represent loanable funds, particularly at banks, assuming the savings are held at banks, rather than currency itself being held ( " stashed under one's mattress " ).
38.
Combined with a market of loanable funds ( which relates savings and investment through the interest rate ), this theory of capital production leads to a model of the macroeconomy where markets reflect inter-temporal preferences.
39.
This is a highly stylised example, where one abstracts from changes in output, and where the economy is in financial autarky ( and, consequently, savings and investment express the supply and demand of loanable funds, respectively ).
40.
Yeager does not take into consideration that business cycles start not just with monetary-disequilibrium but happens when that disequilibrium enters the market for loanable funds and produces disequilibrium there, such that the supply of lonable funds exceeds real savings.
