Such money used to be invested in bank deposits, either directly or indirectly via money-market funds.
Chinese families put as much 58% of financial assets in bank deposits, followed by 18% in cash at home, 15% in stocks, and 4% in funds, according to the PBOC report.
American Express earns a net interest income on the spread between the rate it earns from un-loaned amounts sitting in bank deposits and short-term investments in financial securities and the rates at which it extends credit to card members.
If you draw a loan from one bank and keep your deposits in another bank, you use the deposits in that bank to pay off the loan to the first bank.
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Older people tend to have more money in bonds and bank deposits, so the strategy of repaying a mortgage instead of keeping it in bonds is especially good for them.
Officials in Spain and Italy tried over the weekend to reassure their citizens by saying the situation in Cyprus is unique, and that bank deposits in their countries will remain safe.
Beyond the immediate problems firms here will face because of a limit on transactions and a freeze of banking activity, Mr. Pilikos said he feared many of his organization's members wouldn't survive the blow delivered by the closure of Cyprus Popular Bank and the hefty haircut imposed on deposits in Bank of Cyprus.
These six financial institutions issue more than two-thirds of all credit cards, over half of all mortgages, control 95 percent of all derivatives held in financial institutions and hold more than 40 percent of all bank deposits in the United States.
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One way of stopping that, says my market interlocutor, is if the Eurozone authorities would issue pan-European depositor insurance, effectively saying to everybody, everywhere in the zone, that the other members would make good bank deposits in the event of exit, or capital controls etc.
Often that is why it is kept as gold in the first place, rather than in more visible bank deposits.
The report also found that from 1995 to 2009 the Indian private sector shifted away from bank deposits to deposits in overseas financial sectors.
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It has just 127 branches in the U.S. and not even a 1% share of total bank deposits in the metropolitan areas it serves.
After the holidays, cash will flow back into the banking system in exchange for customer deposits and will, in turn, flow from the banks into the Federal Reserve Banks in exchange for bank reserve deposits.
As we discussed in last month Monetary Watch , the recent acceleration in uncovered money substitutes is no longer just about depositors liquidating time and other term deposits in favor of instantly redeemable demand and savings deposits (in Austrian speak, bank depositors liquidating credit claims, raising cash, then depositing and holding that cash in money substitute form with those same banks).
Similarly, all existing bank deposits in euros would be maintained in euros, preventing bank runs.
The "haircut" for such deposits in Bank of Cyprus is expected to be about 60%.
Dim sum bonds provide an investment outlet for yuan that would otherwise be stuck in low-yielding bank deposits.
Global markets were spooked by the EU plan to tax bank deposits in Cyprus in exchange for the much-needed bailout.
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In the first half of the 20th century foreign investment was largely in the form of bank deposits and government bonds.
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As leaders prepared to tax bank deposits in order to prevent a default, citizens panicked and caused a run on the banks.
Traditionally, banks made their money by borrowing money (in the form of bank deposits) at 3%, lending it out at 6%, and pocketing the difference.
But to soothe angry depositors, Mr Duhalde had earlier promised that bank deposits in dollars (as most are) will be returned to savers in full.
But in China, where most savings are in the form of bank deposits and where earnings on savings are a significant portion of total household earnings, lowering deposit rates tends to increase the savings rate.
The ECB said that the level of private bank deposits in most countries in the euro zone fell in April, although much of the money appeared to find its way to banks elsewhere in the region.
My friend, David Malpass, an excellent economist, suggested to me a darker explanation: that deposits were accumulating, not because of more bank lending, but because the lack of attractive alternatives had caused people to park their money in very low yielding bank deposits.
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The bank, whose European exposure has been a point of concern for shareholders over the past several years, fell 2.7% after the small country said it will tax bank deposits in order to gain bailout support from the Troika (the IMF, ECB and European Commission).
In order to secure the 10bn euros, agreed by the EU and IMF, Cyprus was forced to wind up one major bank and write-off of a large portion of secured debt and uninsured deposits in the largest bank, Bank of Cyprus.
REYKJAVIK, Iceland - Iceland's biggest bank received an emergency loan from Sweden on Wednesday, and Britain said it would guarantee deposits in an Icelandic bank's online unit as the financial crisis engulfing this tiny Nordic nation showed no sign of easing.
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