Sentences with phrase «bank solvency»
Bank solvency refers to the ability of a bank to meet its financial obligations and have enough assets to cover its liabilities. In simpler terms, it means that a bank is financially healthy and has enough money to pay back its customers and investors. Full definition
Data on bank solvency indicate American banks are doing OK (on paper), European ones are troubled and Canadian outfits are resting dangerously on their laurels.
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Bank regulators are concerned only with maintaining bank solvency (mainly for a foreign - owned banking system) not with the overall economy.
Although recently rising prices for stocks, high - yield bonds, commodities and other riskier assets would suggest otherwise, investors remain skittish over the still unresolved and quite concerning risks facing financial markets, such as the U.S. presidential election, the potentially prolonged post-Brexit renegotiations, Italian bank solvency and a slowing China.
Since the Fed is a regulator of banking solvency, and must be, because money and credit are similar, the Fed also has a mandate to preserve the banking system under its purview.
William Dudley at the New York Fed and Ben Bernanke have decided that the way to restore bank solvency is to inflate the economy out of debt.
I agree that central bank solvency is superficial unless the government insists on receiving a given level of income from the central bank, and the central bank is trying to meet some fixed price level or inflation target.
We do not intend to use our «lender of last resort» authority again, and will manage bank solvency in a way to avoid this.
(Need I mention that the Fed should either peg to gold, or that it should only have a a double mandate — bank solvency first, inflation second.
10) Should you worry about bank solvency?
They will also have to figure out what comes first if there is a broader banking solvency crisis, and / or significant shrinkage of real GDP with a rise in unemployment.
He has charted out a different course than the one Greenspan took; the hard question is whether he can maintain a policy of limited liquidity in the face of deteriorating conditions, and avoid the charge of favoritism, or, sloppy bank solvency management.
Our existing legal framework can deal with operating bank solvency problems.
If I were regulating banks, I would get a small army of actuaries to study bank solvency, and craft regulations together with a single banking regulator that covers all depositary financials (or, state regulators like in insurance which would be better) using methods similar to those for the insurance industry.
The result is that instead of running the banking system for the economy, Latvia and other post-Soviet economies are managing their economies to maintain bank solvency — as if the indebted population is really expected to spend the rest of their lives paying off the deep negative equity left in the wake of bad loans.
Although recently rising prices for stocks, high - yield bonds, commodities and other riskier assets would suggest otherwise, investors remain skittish over the still unresolved and quite concerning risks facing financial markets, such as the U.S. presidential election, the potentially prolonged post-Brexit renegotiations, Italian bank solvency and a slowing China.
This normally risky practice was rendered almost risk - free by the CBI's explicit guarantee of the banks solvency.
2) How should bank solvency be regulated?
7) Whatever one thinks about mortgage cramdowns (I can see both sides), they will have a negative effect on bank solvency, and the solvency of those who hold non-Fannie and Freddie mortgage backed - securities.
Still, that means regulation isn't addressing the most significant threats to bank solvency.