Sentences with phrase «risk of a bank run»

Two, you become like a wildcat bank from the 1800s and issue banknotes that aren't backed, but then you run the risk of a bank run and your value going to zero.
If banks don't engage in asset / liability mismatches aka maturity transformation, most of the risks of bank runs will go away.

Not exact matches

They are probing Societe Generale SA over allegations of bribery related to the bank's work with the Libyan Investment Authority, while Airbus SE reportedly risks a fine in excess of $ 1 billion in a case also run by U.K. watchdogs.
In a note to clients, UBS economists Thomas Wacker and Jürg de Spindler foretell «a chain reaction of bank runs and soaring risk premiums... that ultimately breaks up the entire eurozone.»
As a result, the banks argue they would be forced to divest themselves of any ownership interests or sponsorships of Canadian mutual funds, lest they risk running afoul of the Volcker rule.
«The intention of all stakeholders,» he adds, «is to offer an environment where depositors can place their money without any risk or concern,» even if events beyond the bank's control lead to a run on its deposits.
Pinto said in his presentation that the bank spends a lot of time discussing the appropriate level of risk it should run.
This might mean, for example, that the central bank would need to run a more stimulative policy than it would have otherwise to offset the effect of macroprudential policies, and the macroprudential authority would impose more stringent measures than it would have otherwise to counteract the leverage and risk taking generated by looser monetary policy.
As Nassim Taleb argues in The Black Swan, banks have a tendency of losing as much money as they make in the long run due to shady business practices and high - risk ventures.
Equally importantly, a global shift to allow higher inflation would run the very real risk of undermining trust in central banks and their commitment to price stability.
That's not just because of wobbly data and economic risks on the near - term horizon; it's also because of the way the Bank has begun to see the Canadian economy evolving over the long run.
Bloomberg Businessweek wrote in February about the risk: «Fear of not being able to get your money back is what causes bank runs and financial mayhem in general.»
The risk is that the threat of private - sector debt restructurings will lead to contagion in the form of bank runs and the loss of market access for weak sovereigns and banks.
All in all, the Bank seems willing to allow the economy to run hot as the «supply side of the economy evolves», rather than to risk cooling demand with premature rate hikes.
Banks that get involved with bad actors, he said, «run the risk of being slapped with very, very large fines, which is a significant financial risk, as well as a reputational one.»
theres something desperatly wrong within the club and I for one feel that Wenger is not the entire casue of the problem but he almost certainly IS a part of it and is complicet with the board in running a well oiled machine as far as finance is concerned but will not risk any major financial outlay in order to achieve what it is in effect there for, TO WIN TROPHIES IN FOOTBALL COMPETITIONS!!!!! Its a sporting club NOT an investment bank for private members as its currently being run
Though Scotland's Futuresuggests otherwise, it is likely that a corollary of this is that a great deal of financial regulation will also be undertaken at the British level: if the Bank of England is to act as lender of last resort, it will also want to have some control over financial regulations that mitigate the risks run by Scottish institutions.
But they would be on the lookout for one another: the moment no other bank is willing to lend to you, they run the risk of needing some of that money back, and having to be the one to admit it's not there anymore.
«The recognition of being named as Bank of the Year in your own country by the world's longest running international banking title is testament to the strong management, sound business model and prudent risk approach of your bank.&raBank of the Year in your own country by the world's longest running international banking title is testament to the strong management, sound business model and prudent risk approach of your bank.&rabank
It is our considered opinion that the BoG, does not issue banking licences to people, because they have been successful in one field of endeavor or another, the economy is at risk, should all our local banks run aground.
Once banks reach a certain size, the state is forced to bail them out if they run into trouble because of the systemic risks they pose to the economy.
Teaming up with the Food Bank of the Southern Tier, the Rock on Café program runs a «Week of Caring» to collect food donations to support the Food Bank's BackPack Program, which provides healthy, kid - friendly, and easy - to - prepare foods to children at risk of hunger over weekends and holiday breaks when they do not have access to free or reduced price school meal programs.
Run to the bank and get your money out of there as quickly as you can, fighting the hordes of customers trying to do the same, before the increased risk materializes.
The bankruptcy will be caused by the bank taking too much risks or by mismanagement, the bank run may be completely unrelated to the actual health of the bank.
He said: «Whether it's providing services for children at risk of exclusion, whether it's teaching prisoners to read, whether it's dealing with breakdown, whether it's provision of food banks, there are some extraordinary organisations run by faith groups and Christians in our country and I want to see the possibilities for that to expand.
Educational and political action which is not critically aware of this situation runs the risk either of «banking» or of preaching in the desert.
It's a good idea to create a separate project for each module and assign assets to it — this means that you never run the risk of using the wrong images for a module, or pull questions from the wrong question bank.
Assuming some visionary philosopher King rode in with a mandate to hedge all risk, with total operational control and the budget to see it through, they would have had the ability to go out and buy a fair amount of coverage in the ABX indices for FP (and maybe structure some custom swap with a large bank) and begin an immediate «run - off» at the Securities Lending portfolio.
Even if you can juggle your due dates around so that everything gets paid close to on time without borrowing money, cutting that close to the edge of your budget runs the risk of either being hit with a late fee on one or more bills or overdrawing your bank account if the timing is off.
This bank has run into a number of problems related to sub-prime loans so rather than continue to pay out the normal dividend and risk running out of cash, the company decided to decrease the amount of dividend.
One day, Bob can no longer afford to pay the $ 500,000 back to the bank, and his house now runs the risk of going into foreclosure.
Bloomberg Businessweek wrote in February about the risk: «Fear of not being able to get your money back is what causes bank runs and financial mayhem in general.»
Only you can make the decision on which puppy to choose, but in my opinion it is better to wait for a healthy puppy, than run the risk of bringing home one who will suffer, and cause your bank balance to suffer along with it, for years to come.
And any hiccup (like a bank holiday) runs the risk of either your BT Card or your Amex going negative, and in a big way.
The risk you run if you do not pay and do not do this properly is that she, with a valid judgement in her hand, can take enforcement action including garnishee of bank accounts and seizure of property (of course, you can do the same to her).
The risk you run if you do not pay and do not do this properly is that she, with a valid judgement in her hand, can take enforcement action including garnishee of bank accounts and seizure of property -LRB-...
«If banks continue to torpedo even modest updates to the payment system, they ultimately do run at least some risk of facing the Blockbuster Video problem.»
Similar to banks, brokers and other traditional financial companies cryptocurrency businesses find that they must weed out potential clients that can put them at risk of running foul of AML laws or international sanctions laws.
Furthermore, she added that a government - issued cryptocurrency could increase the risk of so - called «bank runs» — when a large number of customers withdraw funds from a bank based on concerns about the bank's solvency.
In front of the court is Alice Corp. v. CLS Bank, a long running case about a computer system that helps with closing financial transactions by avoiding settlement risk.
The risk function is now integral to the running of the entire bank, so risk jobs demand the ability to deal with colleagues across almost all departments.
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