Topic 01 Selected Slides -- Introduction to International Banking

Topic 01 Selected Slides -- Introduction to International Banking

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INS 3650 / 5550 FINS 3650 / 5550 International Banking Semester 2, 2011 Dr Bruce R Arnold bruce.arnold@unsw.edu.au Re: FINSXX50 z3121234 [Topic]
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oney Creation (@ 20%) Money Creation (@ 20%) Bank Deposited Lent Reserves A 100.00 80.00 20.00 0 00 4 00 6 00 B 80.00 64.00 16.00 4 00 1 20 2 80 C 64.00 51.20 12.80 1 20 0 96 nd so forth D 51.20 40.96 and so forth
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he Money Supply The Money Supply MB — ‘monetary base’: currency, reserves held with central bank M1 — + demand deposits, – reserves M2 — + savings deposits, small time deposits 3 large time deposits M3 — + large time deposits MZM — ‘money with zero maturity’: + money market funds
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aul cCulley n Banking Paul McCulley on Banking “The genius of banking is maturity, liquidity and quality transformation: holding assets that are longer, less liquid and f lower quality than the funding liabilities ” of lower quality than the funding liabilities. “[N]ot just now, the last century or the century before that,
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This note was uploaded on 09/19/2011 for the course FINS 3650 taught by Professor Arnold during the Three '11 term at University of New South Wales.

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Topic 01 Selected Slides -- Introduction to International Banking

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