That plan called in part for commercial banks to increase their lending to third world countries by $20 billion over three years.
As a result both institutions are seeking to increase their lending to the third world.
In response, some large banks have increased their lending to members of minority groups.
With more capital at their disposal, banks should start to increase lending.
In theory, the banks then use the cash they gain to increase their lending to businesses and individuals.
Brazil's central bank announced several measures to encourage the country's banks to increase lending.
As part of the deal to receive public money, the banks agreed to restructure themselves and try to increase lending.
"Not a single bank has said that a further increase in reserves would increase their lending."
In section 3.3.1 we saw that if an individual bank increases its lending, other things being equal, the money supply will expand.
Over the years, it has made very few mortgage loans but has recently tried to increase lending.