Why Banks fail Flashcards
1
Q
Lo c
A
Low Capital Ratio
2
Q
Lo l
A
Low Liquidity Ratio
3
Q
Ru
A
Run on the Bank
4
Q
bo
A
borrowing short term and lending long term
5
Q
ac
A
Actions of regulator
6
Q
Ro
A
Rogue employees
7
Q
Re
A
Recklessness = Lack of firewall between investment and commercial banks / weak regulation
8
Q
Le
A
Government letting the banks fail to set an example.
