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Tags
#economics #money
Question
share capital is a non-repayable [liability or asset?] or source of finance
Answer
liability

Tags
#economics #money
Question
share capital is a non-repayable [liability or asset?] or source of finance
Answer
?

Tags
#economics #money
Question
share capital is a non-repayable [liability or asset?] or source of finance
Answer
liability
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share capital is a non-repayable liability or source of finance

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Mark Wadsworth: Banking made easy
o make a withdrawal.3. So in 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. <span>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 least a tenth* of total assets; so if the value of assets falls by a tenth or less, there are still enough assets left to repay depositors and bondholders.5. Quite how the myth that a bank can lend out ten times as much as it takes in deposits (or bonds) arose, I have no idea, it is quite simply not true. The Basel one-tenth* limit is impo

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