Tag Archives: Banking

ECB: Monetary Policy Transmission – Interest Rate Channel System, Reserves & the Interbanking Market

Having looked at the tools available to the ECB and at its balance sheet, after considering financial market failures due to Fractional Reserve Banking, overlending and VaR, I would like to turn my attention to the actual operation of monetary … Continue reading

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Leverage and Balance Sheet Management: Reserve Ratios and VaR

Having previously considered how banks intermediate between investors and their investments, FRB and bank runs, and having shown that overlending is likely to be an equilibrium result of the financial market, I now turn my attention to how banks, among … Continue reading

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Week Ahead Calendar: 20/01/2012 to 27/01/2012 – Schedules and Hopes

Please find below a list of the eventful days ahead. The main sources are Unicredit’s Weekly Focus, Forex Trading weekly calendar, the EU’s national issuance calendar and many others,  all of which I advise you to consult directly. I found Unicredit’s to … Continue reading

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Asymmetries of Information, Overlending and the Output gap

I have recently discussed Banking intermediation, FRB and bank-runs in the context of the Diamond 1997 model in line with my effort to understand the banking/financial sector and record some of the knowledge I acquired over the years. When, in … Continue reading

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Banking Intermediation, FRB & Bank Runs

Having described the tools available to the ECB (and these can be generalized to other CBs), I would like to briefly consider the functioning of the banking sector. In this post I will consider the very basic concepts of banking … Continue reading

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