Tag Archives: Liabilities

ECB Balance Sheet: Composition, Scope and Limits

Having considered some of the inner workings of how commercial and investment banking works from the point of view of (1)Banking intermediation, Fractional Reserve Banking and Bank runs, (2) Asymmetries of Information, Overlending and the Output gap, and  (3) Leverage … 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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