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Assets designated as 'held to maturity' should simply be illegal for banks unless depositors also agree to never withdraw until maturity. Banks are subject to
by aeternum 4y ago
Assets designated as 'held to maturity' should simply be illegal for banks unless depositors also agree to never withdraw until maturity.
Banks are subject to daily reserve requirements, so everything they invest in should also be market priced (aka mark-to-market) each day.