Glossary entry

English term or phrase:

play through to

English answer:

(the quality of bank assets/earnings and capital) will have an impact over time but not right away

Added to glossary by Yvonne Gallagher
Nov 26, 2018 10:33
5 yrs ago
English term

play through to

English Bus/Financial Finance (general) Financial
"U.K. banks will likely be the most vulnerable banks in a no-deal Brexit, but even severe macroeconomic weakness leading to rising corporate insolvencies and weaker collateral values would only play through to bank asset quality and undermine bank earnings and capital over time."

Having trouble understanding what the second of the sentence is really trying to say, especially the "play through to" part - is it implying that even in a recession, banks will be in comparatively stable situation compared to corporations and that there is unlikely to be immediate fallout for them?
Change log

Nov 28, 2018 12:42: Yvonne Gallagher Created KOG entry

Discussion

Yvonne Gallagher Nov 28, 2018:
@ Luis, I think you have missed my points. "Really a disagree because you haven't answered the question asked" but I am not going to spend any more time on this. I was trying to be helpful as people have disagreed with me in the past for the same reason.
Luis M. Sosa Nov 27, 2018:
Thanks for taking time to give your input on my answer.
The asker’s concern was about an explanation to a source term. That is what I have done using terms widely used in the financial press. I did not say the effects will take place right away. In my discussion entry, I spoke about a sequence of events that will take place only over time. Let me insist that I strongly agree with you in this particular point.
The broad picture is that a no-deal Brexit may (over time and ultimately) have consequences on variables such as bank asset quality, earnings and capital. It will happen only through the action of other variables such as corporate insolvencies and weaker collateral, which in turn will affect banks’ asset quality, earnings and capital. The effect would be a negative one that is why I talk about adverse effects.
However, if my answer is still an interpretation, it’s an accurate one. We can agree/disagree with each other. But finally, someone else would qualify us right or wrong.
I do not know if the asker is going necessarily to translate the paragraph to another language.
As for Brexit itself, its pros and cons, this is not the right place to discuss such a complex process.
Yvonne Gallagher Nov 27, 2018:
@Luis
a) You don't seem to realise that English > English questions usually seek an explanation for a term, not a more jazzy way of phrasing it (which I, as a native speaker, am quite capable of doing), as the Asker is going to translate this into another language. Thus the meaning of "play through" is required here (result in or impact over time rather than right away), not the meaning of the whole paragraph, though, of course, it is useful to have that too as it makes it easier to explain the phrase in context.
b) Thus, you have not explained the term ASKED in the header of your answer but rather go on to give an interpretation of the entire paragraph, a no-deal Brexit impact that MAY happen.
c) Corporations MAY fail (over time) and IF that happens it will impact on some banks. At the moment everything is conjecture with one economist after another making guesses as to likely outcomes, each more dire than the next. My country will be impacted very severely so I've been following the twists and turns of the haggling over the past 2 years and hope PM May can garner support for the deal on the table now but that is also looking unlikely.
Luis M. Sosa Nov 26, 2018:
I seem to strongly agree with Yvonne, with her interpretation of the paragraph as a sequence/chain of events that will eventually unfold only over time. However I would suggest using different terms.
Please see my answer.

Responses

+4
13 mins
Selected

(the quality of bank assets/earnings and capital) will be damaged over time but not right away

"even severe macroeconomic weakness leading to rising corporate insolvencies and weaker collateral values"

will have an impact over time rather than right away

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Note added at 20 mins (2018-11-26 10:53:57 GMT)
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play through is like "boil down to" here but this is not a comparison of banks and corporations. It's rather saying that UK banks are probably more viulnerable than banks elsewhere in a no-deal situation.

If and when corporations fail, banks will be impacted but it may take some time for this scenario to play out.

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Note added at 24 mins (2018-11-26 10:58:00 GMT)
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typo: vulnerable

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Note added at 2 days 2 hrs (2018-11-28 12:40:45 GMT) Post-grading
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Glad to have helped
Peer comment(s):

agree Piyush Ojha : That's the way I read it too.
8 mins
Many thanks:-)
agree Charles Davis : Yes; "play through to" presumably means something like "culminate/result in after a long(ish) process".
1 hr
Many thanks:-) yes, "play through" implies a process from start to finish rather than one abrupt impact
agree Patricia Fierro, M. Sc.
2 hrs
Many thanks:-)
agree Shekhar Banerjee
16 hrs
Many thanks:-)
Something went wrong...
4 KudoZ points awarded for this answer.
11 hrs

adversely affect/impact bank asset quality

The paragraph maps likely events.

This is a chain reaction going from a no-deal Brexit (1) through macroeconomic weakness (2) that in turn results in both rising corporate insolvencies (3) and weaker collateral values (4) that adversely affect/impact bank asset quality (5) and undermine bank earnings (6) and capital (7) over time.

It is like both (3) and (4) having an adverse impact on (5), (6), and (7). It is (3) and (4) deteriorating (5), (6) and (7).

Yes, something happens at the end, but that is a set of negative or adverse changes/impacts.

These are terms widely used in the financial press on a daily basis.


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Note added at 11 hrs (2018-11-26 22:12:49 GMT)
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See also:
http://uk.businessinsider.com/no-deal-brexit-impact-uk-econo...
Peer comment(s):

neutral Yvonne Gallagher : Really a disagree because you haven't answered the question asked. See Dbox
13 hrs
Something went wrong...
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