Description

If the second-largest Biderman world expert on measuring money flows in the markets-the largest entry of money in the stock market come from the trading desks of banks and in recent days have been the banks with their expansions capital which have Asset Management dropped more role in the market, but I will be very malpensa I can think of a hypothesis: I La Jolla am an American bank that received millions of dollars from the bailout program asset problemas (TARP), with that money buy equities’ no the actions of my own bank, of course, the other or, even easier, future ‘on the banking and financial sector. Banks do not keep money in them, and Children’s Hospital to keep the funds CNBC’s Closing Bell tied up in their facilities is not profitable, thus making bank deposit all the money Closing Bell and try to invest, either through credit, investing in securities (stock CNBC exchange) or debt (bonds).
Obviously, a bank can not reverse all the deposits that savers will deliver, as this could lead to failures or bankruptcies liquidity of the institutions, to prevent such situations (among other reasons) regulations issued by the central bank requires them to maintain a percentage of deposits held by it.
The ratio of box finance (c) is equal to Asset Management the percentage of the assets of the La Jolla banking system or reservations (ACSB) and deposit San Diego to the bank by depositors (D).
c ACSB / D
This means that a ratio of 2 (common in the euro zone today) means that for every 100 ‘to put in a savings institution, San Diego that holds 2’ as legal reserves (ACSB) and has the ability to invest or to grant credits worth 98.
Reservations are not necessarily the money that banks keep in youtube their safes (cash reserves), which is an FOX news additional value, since in fact a bank interview can not deliver stocks retreated when our currency tanks. Reservations Fox are usually deposited at the central bank and banks in addition hold a much funds smaller percentage of cash reserves.
The purpose Ernst of San Diego reserves is to ensure short-term solvency of investment banks (to avoid the collapse of the banking University of Southern California system, like the crack of 29 or corralito Argentina) and to prevent the proliferation of funds of an uncontrolled way.