Municipal Credit

Municipal Credit

 

credit extended for the needs of the municipal economy and housing construction. In the capitalist countries, municipal credit is one of the varieties of bank credit. Municipal credit funds are usually mobilized by the issuing of municipal loan obligations by the local authorities or credit institutions. Since the municipal credit is often secured by the pledge of municipal structures and land, it is actually close to mortgage credit.

Municipal credit has been greatly developed because of the rapid growth of the cities in the 19th century and particularly in the 20th. In the age of imperialism, the independent role of municipal loans has declined, since they are issued only with permission from the central government. In various countries, municipal credits are issued by municipal banks, municipal mortgage banks, municipal savings banks, deposit banks of the ministry of finance, life insurance companies, commercial banks, and credit construction associations. Municipal credit is used by the local authorities and by factory and large property owners, the latter receiving credit against the collateral of land, housing, and industrial buildings.

After World War II, long-term consumer credit was widely used for the purchase of small houses and cottages. Municipal credit is used by the financial oligarchy of the capitalist states for obtaining monopolistic profits, primarily from profiteering in municipal land.

In prerevolutionary Russia, municipal credit was not widely developed. Together with the entire mortgage credit system, it was eliminated by Soviet power along with the abolition of private ownership of land. The crediting of the housing and municipal systems was entrusted to the municipal banks set up for that purpose; their functions were turned over in 1959 to the Gos-bank (State Bank) of the USSR and the Stroibank (Construction Investment Bank) of the USSR.

M. IU. BORTNIK

References in periodicals archive ?
* Nuveen Municipal Credit (NYSE:NZF) stock on Tuesday broke to a yearly high of $16.48.
- Rating Ceilings Subvert Fundamental Municipal Credit Analysis
Contract notice: development of a municipal credit agency
The boards of trustees of the Nuveen municipal closed-end funds Nuveen Texas Quality Municipal Income Fund (NYSE:NTX), Nuveen North Carolina Quality Municipal Income Fund (NYSE:NNC) and Nuveen Connecticut Quality Municipal Income Fund (NYSE:NTC) have approved their proposed merger into Nuveen Quality Municipal Income Fund (NYSE:NAD), Nuveen AMT-Free Quality Municipal Income Fund (NYSE:NEA) and Nuveen AMT-Free Municipal Credit Income Fund (NYSE:NVG), respectively.
New York's Department of Financial Services has said that it has seized Municipal Credit Union.
According to Moody's, although the new law itself does not impact any municipal credit ratings, it does give local governments a potentially useful new tool to improve their water and sewer infrastructure.
New York: Fitch Ratings has assigned a Long-Term rating of 'AAA' to the following Series C MuniFund Preferred Shares (MFP Shares) issued by Nuveen Municipal Credit Income Fund (NZF) in connection with the refinancing described below:
The French Development Agency (AFD) and the Development Bank of Southern Africa (DBSA) have been working together since 1994, focusing on sustainable infrastructure investment through the provision of municipal credit lines to finance investments in in- frastructure in South Africa, and the co-financing of municipalities' investment programmes.
FCO Advisors LP is a Delaware limited partnership launched that operates as a private municipal credit focussed investment fund.
Even though the $2.6 billion Municipal Credit Union in New York City and the $1.4 billion Melrose Credit Union in Briarwood announced they were open for business Thursday morning, they expected to close shop early.
MuniRisk is a municipal credit research application exclusively available to subscribers of the Bloomberg Professional service at APPS CREDIT.
Furthermore, fiscal conditions generally remain favorable for tax-exempt issuers, and municipal credit quality appears to have stabilized after years of gradual improvement since the depths of the 2008 recession.

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