Bank of England publishes banking primer to educate public
Just as the nature of bank capital and liquidity differ, so does the nature of the shocks they militate against, the bank of England notes in a primer seeking to address some misconceptions about capital and liquidity and explain the important differences between the two resources using clear visual examples.
The article – a pre-release of of the BoE's quarterly bulletin, which will be released on September 17 – also sets out that:
• It is misleading to think of capital as a resource ‘held' or
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