4 ms·
No there are strict tier 1 and tier 2 capital ratios that banks are required to uphold.
by richardwhiuk 7y ago
No there are strict tier 1 and tier 2 capital ratios that banks are required to uphold.
- gridlockd 7y agoThe fractional reserve requirements for cash and equivalent are in the single digits, as I said: https://en.wikipedia.org/wiki/Reserve_requirement#Required_reserves https://en.wikipedia.org/wiki/Reserve_requirement#Required_r... Tier 1 capital is not cash reserves, it's risk-adjusted assets, which may or may not be made up of assets that are as liquid as cash.