Last year, in a bid to generate domestic capital for business activity, the government issued interest-bearing recapitalization bonds to prime the banking system with funds.
The rest was made in asset management, the distribution of mutual funds and banking.
ECONOMIST: Brokers can still make money. But not from brokerage
The rule, which was named for former Federal Reserve Chairman Paul Volcker, also restricts banking investments in hedge funds and private equity funds.
The macroeconomic picture has improved and investor confidence has found a new lease on life after Tokyo halted the deterioration of the banking system, public funds juiced up the statistics and numerous private companies began restructuring their operations.
Citigroup managing director Kent Lucken agrees, saying more of his private-banking clients are leveraging hedge funds to expand their portfolios.
However, during unusual periods of reserve shortages in the banking system, the Federal Funds rate would be bid up above the discount rate and trigger borrowing from the Fed.
When the Fed makes loans or acquires securities, the funds enter the banking system and ultimately appear in the reserve accounts held at the Fed by banks and other depository institutions.
Should they fail to do this, the government has the right to convert into voting shares the paper it took in return for its injection of public funds into the banking system a couple of years ago.
Rather than injecting the funds straight into the banking system, Spain's rescuers are lending them to the government.
It directly reduces the size of the monetary base and the funds available to the banking system for lending.
FORBES: Addressing The Fallacious Views Of Contemptuous Keynesians
The heads of state and government reached three key agreements on bailout funds, moves towards banking union, and on growth.
By mid-December, what were termed the White Papers were being delivered to policymakers, looking into subjects including banking, credit ratings, hedge funds and regulators, as well as bailout efforts.
Earlier this week the former head of the HBOS mortgage bank, Sir James Crosby, recommended that the government take direct action to stimulate the flow of mortgage funds to the UK banking industry.
Green group leader Rebecca Harms said that there needed to be wide ranging reform of Europe's banking system such as banning hedge funds and introducing a financial transaction tax, a call echoed by Lothar Bisky, the leader of the far-left group.
Some of the funds move through the hawallah banking system in South Asia and the Middle East.
The U.S. Federal Reserve also occasionally makes loans to the banking system by pumping money into its funds market.
Sakura's appeal is that its retail-banking business is a cheap source of funds.
Another idea would be to allow Countrywide access to the Fed's discount window, which is the banking system's last resort when funds are needed.
The Judiciary Committee is clashing with colleagues on the U.S. Senate Banking Committee, who claim that hedge funds, research analysts and other corners of Wall Street are their exclusive jurisdiction.
We have seen some disturbing evidence of the same in recent weeks, as when Ireland unilaterally guaranteed all bank deposits and thereby sucked funds out of the British banking system.
CNN: Commentary: Is this the start of another Great Depression?
In 2001, the great complaint from US banks was that the European and Asia banks had competitive advantages over US banks in that they could engage in retail banking, commercial banking, investment banking, brokerage, insurance, hedge funds, private equity, and the like.
Alan Villalon, a senior banking analyst at Minneapolis-based First American Funds, says JPMorgan got bank earnings off to a good start.
FORBES: JPMorgan Beats Estimates And Saves For A Litigious Day
If it so chose, the Fed could also expand M3 by buying treasuries from holders outside the banking sector, like insurance companies, pension funds and members of the public.
In April, the FBI issued an alert about a style of attack in which hackers steal a business's online banking login details and use them to transfer funds out of the business's account.
The company through its bank provides traditional commercial, retail and mortgage banking services, as well as other financial services in the fields of investment banking, asset management, trust, mutual funds, securities brokerage, insurance and other specialty financing.
But much of this activity, like that of hedge funds, happened beyond the reach of banking regulators.
In Germany there is a fierce debate among economists about whether a banking union will just result in Germany transferring more funds.
With trust eroding in the state of the Russian banking system, Globex stopped customers from withdrawing their funds after a run on the bank.
The demise of the investment banks, with their far higher gearing, as well as deleveraging among hedge funds and others in the shadow-banking system will add to a global credit contraction of many trillions of dollars.
Suncorp Group Limited, formerly Suncorp-Metway Ltd, is engaged in the provision of banking, general and life insurance, superannuation and funds management products and related services to the retail, corporate and commercial sectors in Australia and New Zealand.
应用推荐