Deposits in the branches of American banks in Buenos Aires were to be as safe as deposits in Miami.

The authorities may hope that their plan to insure bank deposits will shift deposits from the three largest banks to many smaller banks around the country, facilitating local startups access to financing.

Deposits will flow back into Greek banks.

But structured deposits for example, deposits whose rate of return is linked to the performance of the New York Stock Exchange are becoming increasingly popular.

That generally transfers the deposits from the lending bank to another bank.

This is also partly why the Greek economy is affected by the tax on deposits.

This is particularly true of the repo markets, which provide the equivalent services for professional investors banks and large corporations that ordinary bank deposits provide for individuals and small firms.

The European Banking Disunion

Taming Europe s Banks

Central Banking s New Face

The End of Banks?

Central Banks Outdated Independence

Celebrity Central Bankers

Central Banking s New Club Class

The reaction among national politicians, central banks, and banks themselves was not universally favorable.

The Chinese authorities do it today, and they also set the minimum deposits banks must maintain with the central bank.

Are Bad Banks a Good Idea?

The market share of state owned banks is 85 .

Central bankers or markets?

Control of banking is the simplest.

Fifteen of the largest banks choose Russia

Or the deposits can be consumer paper issued by KKR Atlantic Financing, and the loans can be CDO sub prime mortgage tranches that KKR Atlantic holds in its portfolio.

Bank subsidiaries will increasingly have to finance local lending with local deposits and other local funding.

The deposits can be individuals paychecks and the loans can be to small businesses.

Indeed, the worsening banking crisis, with deposits fleeing from the eurozone periphery, is further strangling Europe s growth prospects.

When banks make loans, they create deposits for borrowers, who draw on these funds to make purchases.

A second possibility is that banks worry about having enough resources to meet their own creditors demands if they lock up funds in long term loans. But the many central bank lending facilities that have been opened around the world should assuage these concerns, especially for large and well capitalized banks.

The bailout of banks led to a wave of mergers.

The majority of big banks are introducing this system.

That scare was contained when the G 7 committed to increase guarantees of bank deposits and to backstop the financial system.

Yes, the principle of regulating bank capital seems sensible. Borrowing increases risk in any business you can t go bankrupt if you have no debt.

But it is not enough to have many small banks.

There are many ways of curbing big banks excesses.

Rather, it will increase banks excess reserve balances.

Thatcher was certainly no friend of central bankers.

Many banks weaknesses are simply being masked by government guarantees.

Yes, the principle of regulating bank capital seems sensible.

(Indeed, stricter banking regulation has been endorsed by all.)

According to The Banker magazine (July 2012), Rosbank occupies the 5th place among Russian banks and the 1st place among private banks of the country.

But, unlike banks, they do not have the safety net implied by central banks role as lender of last resort.

The logic behind the separation was absolutely clear banks whose deposits were insured by the taxpayers should not be allowed to speculate with their depositors money.

The second price spike occurred when Lehman Brothers collapsed, leaving investors scared about the safety of their financial assets including bank deposits.

First, most international bank lending was very short term.

Do Central Banks Have an Exit Strategy?

Straightforward size limits on banks also find no favor.