2 ms·
The key thing is you are not a bank required to pay depositors on demand.
by Spooky23 4y ago
The key thing is you are not a bank required to pay depositors on demand.
- ineedasername 4y agoThe math & definitions of solvency & liquidity don't change with scale. They are separate things even if the mechanics of how they influence each other put them in such close proximity to each other that some people confuse the two. My small scale example illustrated the concept, my large-scale citation of bankruptcy courts show a bit of how it plays out in real life & validates the analogy.