Sentences with phrase «bank reserve assets»

Not exact matches

With assets of $ 118.5 billion, as of December 31, 2017, MUFG Union Bank has strong capital reserves, credit ratings and capital ratios relative to peer banks.

That means banks will have to have total risk reserves of 7 % of weighted assets.

For one, banks get zero interest on required reserves — the assets they must keep on hand to meet depository obligations — so no issue there.

Households have healthy balance sheets (bank deposits are 50 percent of household assets, according to DSG Asia), and China still has the world's largest stash of foreign exchange reserves, according to data accessible via Bloomberg.

In fact asset swaps have been among the major mechanisms by which RMB reserves have accumulated in foreign central banks.

First, by the end of 2014, following the large - scale asset purchase programs, the Federal Reserve balance sheet was funded by about $ 3.1 trillion in liabilities other than Federal Reserve notes, which were mostly in the form of reserves in excess of the amount banks were required to hold; in contrast, there were only $ 64 billion of non-Federal Reserve note liabilities in June 2007, of which only about $ 2 billion were excess reserves.

Almost two thirds of the Peoples Bank of China's $ 2.85 trillion foreign reserves are in U.S. dollar assets.

For these purposes, the Australian Prudential Regulation Authority (APRA) has defined high - quality liquid assets to include cash, central bank reserves and government securities.

On the basis of the «trading desk» adding $ 1 of «free gratis» legal reserves, the banking system acquires $ 200 in earning assets.

Raising reserve ratios is regarded as adding to the banks sterile assets.

This meant by definition that it must have had an even larger central bank deficit, which means confusingly, that its central bank reserves grew as it exported capital abroad to purchase U.S. Treasury bonds and other assets.

After all, there was no other asset in sufficient supply to form the basis for central bank monetary reserves.

«Add to all this the selling by central banks (reserve managers) in emerging economies and a slow shift to lower duration benchmarks, and the result resembles for now a «technically damaged,» asset class,» El - Erian writes.

What any individual bank needs to hold to maintain its liquidity in the face of stochastic adverse clearings, in addition of course to reserves of outside money, is not one specific type of earning asset, but a portfolio that includes enough liquid assets, meaning assets that can be sold on short notice with negligible losses from bid - ask spreads.

Stochastic clearings are not a problem for the banking system as a whole, because banks with unexpectedly large adverse clearings (which leave them with smaller reserves than desired) can sell assets to or borrow from banks that experience positive clearings and reserves greater than desired.

Today, in contrast, the Fed presides over a vast portfolio, with assets consisting mainly of long - term Treasury securities and mortgage - backed securities, instead of the short - term Treasuries it once held; and that portfolio is funded more by banks» holdings of substantial excess reserves than by circulating Federal Reserve notes.

Upturn in Sentiment Buoys Some Emerging - Market Risk Assets There has been a welcome stabilization in global financial markets in recent weeks, which has been helped by indications from the European Central Bank (ECB) that it stood ready to expand its quantitative easing (QE) program, the possibility that the Bank of Japan (BOJ) might do the same, and a decision by the People's Bank of China (PBOC) to further cut interest rates and relax reserve requirements.

This may partly reflect some accumulation of precious metals as reserve assets by central banks such as China and Japan.

Bank reserves deposited with the central bank can be seen as equivalent to the cash assets of baBank reserves deposited with the central bank can be seen as equivalent to the cash assets of babank can be seen as equivalent to the cash assets of banks.

The toxic securitized mortgage assets were not in the Main Street banks and savings and loans; these institutions owned mostly prime quality whole loans and could have bled down the modest bad debt they did have over time from enhanced loan loss reserves.

Throughout the history of banking, and despite laws that have suppressed commercial banknotes while often imposing minimum (but never maximum) reserve ratios on banks, bank reserves have generally constituted a very modest part of banks» total assets, and therefore a modest amount compared to their their total liabilities.

Although changes in the size of the Fed's balance sheet — that is, in its total assets and liabilities — often involve like changes in the quantity of high - powered or base money (currency and bank reserves), and corresponding changes in the total money stock, this isn't always so.

Banks» willingness to accumulate reserves depends, as I've already noted, on the cost of holding reserves, which itself depends on the interest yield of reserves compared to that of other assets banks might hold insBanks» willingness to accumulate reserves depends, as I've already noted, on the cost of holding reserves, which itself depends on the interest yield of reserves compared to that of other assets banks might hold insbanks might hold instead.

For example, if the Fed wants to increase the stock of bank reserves by, say, $ 100 billion (admittedly a mere trifle, these days), it has only to purchase $ 100 - billion worth of Treasury securities or other assets from dealers in the secondary or «open» market.

Elsewhere, emerging market central banks and sovereign wealth funds have been selling reserves and risk assets to defend currencies and or plug budget holes.

An additional factor which has, at the margin, increased the demand for Australian - dollar assets is demand from other central banks to hold Australian dollars as part of their international reserves.

Consider here what motivated the banks in the first place: a great amount of their assets turned out to be worthless (the famous «toxic» assets) when the bust hit in 2008, and they found it difficult to maintain minimum capital ratios; their deposit liabilities of course remained the same, and initially the level of non-borrowed bank reserves went deeply into negative territory (this is to say, they were forced to borrow directly from the Fed's discount window during this time).

A higher rate of IOER thus serves as a substitute, when it comes to reining in lending, spending, and inflation, for reducing the total available quantity of bank reserves, as the Fed might do by selling - off some of the assets it acquired in the course of three massive rounds of Quantitative Easing.

The past several years have featured little more than a gigantic asset swap, the short description being that massive volumes of government debt have been swapped by central banks for massive volumes of idle bank reserves, while massive volumes of low - yielding, covenant - lite debt have been issued into the hands of yield - seeking investors, in order to retire massive volumes of corporate equities at elevated valuations through buybacks.

Considering the totality of this transaction we arrive at the following: the Fed has increased its assets by $ 1,000, a demand deposit of $ 1,000 was created at a commercial bank, but crucially, after the bank deposits the Fed's check, bank reserves have also increased by $ 1,000.

According to Dr. Joseph T. Salerno a professor at Pace University, an editor of the Quarterly Journal of Austrian Economics, and Academic Vice President of the Mises Institute — fractional reserve banking is unstable because the assets and deposits mature at drastically different rates.

Particularly, in a situation such as that which exists today, where the shadow banking system responsible for much of the last few years of credit expansion is now dramatically contracting outside any possible control of the central banking authorities, there is no alternative but deflationary collapse with a concomitant moon shot in the value of the world's reserve currency v. all other asset classes.

In particular, the demand for money rises when: consumer spending rises, uncertainty rises, there are higher costs in buying and selling other assets, expectation of a future stronger dollar, increased demand for reserves from central banks (both foreign and domestic), and a rise in foreign demand for US goods and investments.

100 % segregation of assets in reserves at the central banks, generally.

There are a lot of theoretical ideas still being tossed around, like 100 % reserving, lowering bank leverage, strict asset - liability matching, disallowing banks from lending to financial companies, etc..

What is considered to be «cash reserves» includes non-retirement liquid assets, such as: cash in any banking or checking accounts, stocks, mutual funds, money market funds, and more.

On the basis of the «trading desk» adding $ 1 of «free gratis» legal reserves, the banking system acquires $ 200 in earning assets.

One way to interpret this is that the market has a high demand for safe assets and so the central banks, by buying bonds with reserves, increase the supply of very safe assets, ie.

«Stated income loans require a higher down payment, more reserve assets in the bank, and, of course, the stated income must be reasonable,» points out Casey Fleming, author of The Loan Guide: How to Get the Best Possible Mortgage.

Raising reserve ratios is regarded as adding to the banks sterile assets.

This gave banks an incentive to hold onto their reserves rather than lending them out, thus mitigating the need for the Federal Reserve to offset its expanded lending with reductions in other assets.2

The analysis finds that expanding fossil fuel reserves does even more damage than putting the global climate in danger; exploration financing by the World Bank risks locking developing countries into loan commitments for resources that will likely become stranded assets if policies are implemented to meet agreed climate goals.

He has extensive experience advising corporate clients and financial institutions on a wide range of financing transactions, including project financing, syndicated bank transactions, bond financings, cross-border financings, acquisition financings and asset and reserve based lending, as well as advising on general corporate and commercial matters.

BitMEX, Bitcoin Mercantile Exchange, found further evidence supporting speculation that Noble Bank, a full - reserve bank based in Puerto Rico, is a major cryptocurrency center and is harboring Tether's assets as its primary reserve banBank, a full - reserve bank based in Puerto Rico, is a major cryptocurrency center and is harboring Tether's assets as its primary reserve banbank based in Puerto Rico, is a major cryptocurrency center and is harboring Tether's assets as its primary reserve bankbank...

With the dollar predicted to drop in value by up to 10 percent against other reserve currencies in 2018, Nduom is keen on advocating for a new reserve asset for African central banks.

It is common practice for central banks to hold assets in their reserves such as foreign currency or gold in the case of a financial emergency or market shock.

Moreover, cash deposits as a percentage of total assets grew to 85.8 percent from 72.7 percent during the quarter, indicating a growth in full - reserve banking.

If Noble is serving as Tether's primary reserve bank, it would be a significant development, as it would indicate that — at the very least — Tether is not a Ponzi scheme and that its assets are backed by USD.

While banks are required to hold a certain amount of cash against the commercial real estate assets on their books, investment firms make their own rules when it comes to setting aside reserves for potential losses.