Tag Archives: Commercial banking

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

Posted in Aides Memoire, Banking, Economic Concepts | Tagged , , , , , , , , , , , , , , | 1 Comment

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

Posted in Aides Memoire, Banking, Economic Concepts | Tagged , , , , , , , , , , , , , | Leave a comment