Deposit
in sentence
322 examples of Deposit in a sentence
Germany is resisting the risk-sharing elements of such a union: common
deposit
insurance, a common fund to wind up insolvent banks, and direct equity recapitalization of banks by the ESM.
If it did not contribute much to the crisis, keeping risky trading away from commercial banks’
deposit
base may still be desirable, but not something that the financial crisis “proved” is necessary.
Small-town bankers throughout the country wanted government-guaranteed
deposit
insurance, while stronger big-city banks feared that government
deposit
insurance would put them at a competitive disadvantage.
Two decades ago, Donald Langevoort, now a law professor at Georgetown, showed that major bankers – indeed, the leaders of First National City, the predecessor to Weill’s Citibank – proposed Glass-Steagall in lieu of
deposit
insurance.
The irony is that Congress took up the big banks’ offer to separate commercial and investment banking, but then enacted
deposit
insurance anyway.
No central bank had considered any of these measures (zero interest rate policy, quantitative easing, credit easing, forward guidance, negative
deposit
rate, and unlimited foreign exchange intervention, respectively) before 2008.
For the microfinance industry, such systems represent an important opportunity, as they enable borrowers to apply for, receive, and repay loans on their mobile phones, using a network of local agents to
deposit
and withdraw cash.
This
deposit
is smaller than Blake Ridge, but it is more concentrated and closer to the surface.
Most importantly, if we are to reverse capital flight, the government must persuade individual savers that they can
deposit
money safely and withdraw it on demand.
In this sense, it is the Chinese monetary authorities’ reluctance to open up the formal financial sector to domestic private capital, or to liberalize the
deposit
rate, that is fueling the expansion of shadow banking.
But, instead of blindly tightening the credit supply, policymakers must pursue deep financial-sector reform to liberalize the
deposit
rate, eliminate quantitative controls, and, most important, allow for the establishment of domestic private financial institutions.
With policymakers still debating whether to create a eurozone budget and
deposit
insurance scheme, we should consider what the reforms introduced so far might mean for the future.
In accordance with the European Union’s solidarity principle, the reform has focused on introducing more safety nets and backstops, with a shared budget, joint unemployment and
deposit
insurance, and so forth.
A eurozone
deposit
insurance scheme is similarly ill-advised at this time, given the scale of non-performing loans in many member states.
The government has indicated that it will force Bitcoin exchanges to be on the lookout for criminal activity and to collect information on
deposit
holders.
This requires implementing a fully-fledged banking union – with a pan-European supervisor and a strong regime for banking resolution and
deposit
insurance – as soon as possible.
This is because official capital controls oblige exporters to
deposit
hard currencies with the People’s Bank of China in exchange for freshly printed yuan (usually as bank deposits) or government debt.
A banking union – consisting of common
deposit
insurance, supervision, and crisis resolution – would help to avoid the mutual contamination of banks and sovereigns, which is why the idea was endorsed at the recent G-20 summit in Mexico.
As a result, Spanish banks typically make provision to cover 150% of bad debts whereas British banks cover only 80-100%, and Spanish homebuyers must pay between 20% and 30%
deposit
on a house, whereas 100% mortgages have routinely been given in the United States and the United Kingdom in recent years.
But now, by imposing penalties on excess reserves left on
deposit
with central banks, negative interest rates drive stimulus through the supply side of the credit equation – in effect, urging banks to make new loans regardless of the demand for such funds.
For example, the monetary union needs a real banking union – including not just common supervision, but also common
deposit
insurance and a common resolution mechanism – and Eurobonds, or some similar vehicle for mutualizing debt.
For large banks, Liikanen would separate trading from
deposit
banking, while the ICB’s proposals, which are now incorporated in draft legislation in Britain, would ring-fence retail banking.
One clear difference, though, is that Liikanen, unlike the UK proposals, allows securities underwriting in
deposit
banks.
And it sits oddly with separating trading and derivatives from
deposit
banking, since underwriting is akin to selling a large put option, and typically riskier than normal market-making.
With underwriting on the trading side of the fence, the
deposit
bank could still supply the service to customers, but as a broker, not as a dealer.
To enable individuals to prepare to cover the associated deductibles and copayments, health savings accounts – funds which are not subject to income tax at the time of deposit, and can be used tax-free at any time to cover qualified medical expenses – should be expanded and strengthened.
This means retaining, and possibly strengthening, capital controls on inflows of highly liquid “hot” money from dollars into yuan, and continuing to peg certain interest rates, such as basic
deposit
and loan rates, to help preserve the profitability of banks.
Without automatic stabilizers or a strong financial-stability framework underpinned by
deposit
insurance, coping with the downside risks of the potentially destabilizing financial reforms that the government is pursuing will be difficult enough; a credit shock could prove disastrous.
Big banks’ executives often want to increase their institutions’ leverage, typically because they have various forms of guarantee – in particular,
deposit
insurance and access to central-bank financing on advantageous terms.
Interbank liabilities, meanwhile, grew by 236% – 1.7 times faster than total liabilities and 1.9 times faster than
deposit
liabilities.
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