In market-based banking, asset side of a bank’s balance sheet is securitized and liabilities are based on wholesale borrowing such that the simple assets (loans, bonds, reserves) -liabilities (deposits, capital) balance of regular banking is scaled up into a chain of complex interconnected balance sheets of multiple intermediate entities which are outside the regulatory framework that governs banks, i.e. 505 more words
Tags » Bailouts
Pakistan, which has had 12 bailouts since late 1980s, is trying to avert a balance of payment crisis amid dwindling foreign currency reserves and a yawning current account deficit.425 more words
The “exigent and unusual circumstances” provision of 12 USC § 343, authorizes the U.S. central bank (the Federal Reserve) to provide discrete and immediate relief to an ailing entity (banks and non-banks alike… 2,707 more words
A decade later, the crisis that threatened to take down the global financial order seems like a bad dream. Now it’s business as usual.
In Great Recession, banking institutions creaked and groaned under the weight of flawed investments. 523 more words