Ex-Im Bank needed now more than ever, Rice University expert says

EXPERT ALERT

David Ruth
713-348-6327
david@rice.edu

Jeff Falk
713-348-6775
jfalk@rice.edu

Ex-Im Bank needed now more than ever, Rice University expert says

HOUSTON – (April 15, 2015) – The House Financial Services Committee will hold a hearing today on reauthorizing the Export-Import Bank (Ex-Im), which works to increase U.S. trade by financing projects to stimulate exports and jobs.

WILLIAM ARNOLD

The bank has faced congressional scrutiny in recent years and will shut down June 30 unless Congress reauthorizes its charter. William Arnold, professor in the practice of management at Rice’s Jones Graduate School of Business, said the 80-year-old export credit agency is needed now more than ever. The bank was organized by Houstonian Jesse Jones during the Great Depression.

“American banks are more constrained than ever and are less capable than previously to support American exports, especially for smaller exporters that provide job growth,” said Arnold, who served as senior vice president of Ex-Im during the final five years of the Reagan-Bush administration.

“Ex-Im can take on a different risk profile than private lenders,” Arnold said. “If a country or official entity defaults to Ex-Im, credit is cut off by other export credit agencies, the World Bank and IMF. This brings them into compliance effectively under formal rescheduling arrangements. For private lenders the process is excruciatingly difficult and slow.”

To schedule an interview with Arnold, contact Jeff Falk, associate director of national media relations at Rice, at jfalk@rice.edu or 713-348-6775.

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Follow the Jones Graduate School of Business on Twitter @RiceMBA.

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Related materials:

Arnold bio: http://business.rice.edu/Bill_Arnold.

Jones Graduate School of Business: http://business.rice.edu.

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