Do you want BuboFlash to help you learning these things? Or do you want to add or correct something? Click here to log in or create user.



#economics #money

n the old fashioned view of banking regulation (or self-regulation), we look at the assets side: as long as the bank has a tenth* of its assets in liquid form (i.e. gold coins in the safe), it will probably do OK.
If you want to change selection, open document below and click on "Move attachment"

Mark Wadsworth: Banking made easy
set.2. The traditional books explain how banks started off using 'fractional reserve banking', i.e. they take 100 gold coins as deposits and lend out 90 of them, keeping 10 in the safe in case depositors come round to make a withdrawal.3. So i<span>n the old fashioned view of banking regulation (or self-regulation), we look at the assets side: as long as the bank has a tenth* of its assets in liquid form (i.e. gold coins in the safe), it will probably do OK.4. The modern view of banking regulation (i.e. Basel rules), we look at the liabilities side, and say that share capital (a non-repayable liability or source of finance) should be at lea

statusnot read reprioritisations
last reprioritisation on reading queue position [%]
started reading on finished reading on


Discussion

Do you want to join discussion? Click here to log in or create user.