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I went in search of the capital requirements, just to get a feel for what limits do exist--since they're no longer directly connected to deposits. I found them
by __MatrixMan__ 4y ago
I went in search of the capital requirements, just to get a feel for what limits do exist--since they're no longer directly connected to deposits. I found them: https://www.ecfr.gov/current/title-12/chapter-I/part-3/subpart-B/section-3.10 https://www.ecfr.gov/current/title-12/chapter-I/part-3/subpa...
But then my eyes glazed over and I remembered that I am not proficient in this language. Presumably the following requirements do place some limits on how much money they can have created?
> A common equity tier 1 capital ratio of 4.5 percent.
> A tier 1 capital ratio of 6 percent.
> A total capital ratio of 8 percent.
> A leverage ratio of 4 percent.
- bubbleRefuge 4y agoEvery time a good loan is made. Thats an asset for the bank.