Deposit
in sentence
322 examples of Deposit in a sentence
In January, the BOJ went further and introduced negative
deposit
rates on commercial banks’ mandatory reserves, which markets interpreted as a confusing act of desperation.
In October, the People’s Bank of China, responding to the twin threats of inflation and asset bubbles, raised its one-year
deposit
and lending rates by 25 basis points, to 2.5% and 5.56%, respectively – the first increases since 2007.
Under Macron, new, hopeful ideas were proposed: a common budget for the eurozone; a new safe debt instrument and quasi-federal tax-raising capacities; a common unemployment insurance fund; common bank
deposit
insurance and a common pot from which to recapitalize failing banks (thus providing the missing foundation of a real banking union).
The common bank
deposit
insurance scheme and the recapitalization fund were pushed into an implausible future in which the eurozone periphery’s banks have to shed their bad loans before a proper banking union is forged.
And there are ominous signs of tension in the interbank market, as more and more banks, reflecting weak confidence that the stability of the system has been restored, would rather
deposit
their money at the ECB than lend to other banks.
More risk sharing will start in the banking sector (with EU-wide
deposit
insurance up next), and eventually more ambitious proposals for a fiscal union will be adopted.
Financial institutions with liquidity increasingly prefer to
deposit
their cash with the European Central Bank, which has had to resume its lending to banks.
The eurozone would be healthier with a properly capitalized banking system that holds diversified assets and is subject to a common supervisory framework and
deposit
insurance.
In other words, if your trust in the market and in the way it is regulated fell sharply, you were less likely to
deposit
money in banks or invest in stocks.
The European Central Bank cut its
deposit
rates from 0 to -0.1%, effectively charging banks to keep money at the Central Bank.
German leaders fear that the risk-sharing elements of deeper integration (the ESM’s recapitalization of banks, a common resolution fund for insolvent banks, eurozone-wide
deposit
insurance, greater EU fiscal authority, and debt mutualization) imply a politically unacceptable transfer union whereby Germany and the core unilaterally and permanently subsidize the periphery.
A compulsory
deposit
on mobile phones could provide it.
By contrast, recouping a
deposit
of, say, $25 could prove to be a much more powerful incentive.
Given that the
deposit
must be paid at the time of purchase, it would increase awareness of the device’s inherent value.
Such a scheme would likely be met with some resistance, with mobile-phone producers arguing that, by increasing the cost of their products, the
deposit
system could undermine demand, especially from poorer customers purchasing cheap phones.
Just as a
deposit
system has enabled Germany to reduce substantially the uncontrolled disposal of toxic car batteries, such a scheme could help to keep toxic mobile-phone batteries out of the waste stream.
In fact,
deposit
systems have proved effective in promoting recycling of a wide variety of products.
In many countries, consumers pay a small
deposit
on glass bottles and aluminum cans.
The introduction of a
deposit
scheme for plastic bottles in Germany boosted the plastic-recycling rate significantly.
A mobile-phone
deposit
system could be the first step toward a wider scheme aimed at all consumer electronics, more than half of which are not properly recycled.
Of course, several practical questions will have to be resolved before introducing a mobile-phone
deposit
scheme.
For example, what should be done about phones for which no
deposit
has been paid, whether because they were already in circulation when the scheme was launched or because they were purchased abroad?
One solution would be to record the serial numbers of all mobile phones for which a
deposit
has been paid.
A mobile-phone
deposit
system would promote recycling, reduce mining, conserve resources, and limit toxic waste.
Its key rate has been cut to 0.05%, the
deposit
rate is negative, and targeted longer-term refinancing operations are supposed to support bank lending.
Europe is not a federal state, but the eurozone’s resilience would be greatly boosted if
deposit
insurance were pooled – which would obviously require changes in banking supervision – and if banks diversified their bond holdings so that they were more representative of the eurozone as a whole (through Eurobonds, for example).
Italy and Spain would then be able to refinance their debt at close to the ECB’s
deposit
rate, which is currently 1% on mandatory reserves and 25 basis points on excess-reserve accounts.
But in the real world commercial banks can create new private
deposit
money and hold only a small fraction of those deposits as reserves at the central bank.
The future tax can arise only if and when interest rates and inflation have risen, and when banks are creating new credit and
deposit
money, multiplying the stimulative effect of the initial money-financed tax cut or expenditure.
The American Bankers Association, worried about the fees that banks would be obliged to pay, vehemently opposed
deposit
insurance.
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