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There are lots of reserve and stress testing requirements on banks, and banks are usually public companies whose finances their investors can read, and they oft
by astrange 3y ago
There are lots of reserve and stress testing requirements on banks, and banks are usually public companies whose finances their investors can read, and they often fail when the investors decide the finances look bad.
https://www.investopedia.com/terms/b/basell-iii.asp https://www.investopedia.com/terms/b/basell-iii.asp
- jampekka 3y agoThere are, but the lack of reserve requirements make the widespread idea that banks are lending other people's deposits out is even more wrong. The effectiveness of these "stress tests" remain to be seen. There was widespread trust for the "financial innovations" "pricing risks" until the system turned out to be a total scam.