Money and Systemically Important Bank: Difference between pages

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imported>John Grout
(To expand the stub a little, correct reference to legal tender (q.v.))
 
imported>Doug Williamson
(Create page. Sources: Linked pages.)
 
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Refers to cash (currency notes and coin) in official currency backed by the relevant government. Such money may be [[legal tender]].
(SIB).


More generally, money is anything accepted for the settlement of debts in an economy or jurisdiction.
A bank whose disorderly failure would, because of its:


To the economist, money is whatever is used for four roles:
(i) Size,
# A medium of exchange
# A unit of Account
(ii) Complexity, and
# A store of value and
# A standard for deferred payment


Money, then, can be many things, but most often today is fiat (let it be) money, i.e. tokens provided by a government and accepted by them for payment of taxes, or abstract representations of it. The latter are mostly as electronic representations in the accounts of banks and other monetary financial institutions, including [[central bank]]s. Most money in developed countries consists of these records rather than of the tokens issued as fiat money.
(iii) Systemic interconnectedness


In the past money has been commodity money, for example gold or silver or valuable spices or shells, the value of which is in the of the valuable material or object rather than a nominal value ascribed to (a portion of) it. A government can issue tokens (e.g. notes or coins) exchangeable for a fixed quantity of such a commodity. Such tokens are known as representative money.
cause significant disruption to the wider financial system and to economic activity in its (main) country or region of operation.




== See also ==
== See also ==
* [[Finance ]]
* [[BSBY]]
* [[Legal tender]]
* [[Global SIFI]]
* [[Monetisation]]
* [[Systemic risk]]
* [[Systemically Important Financial Institution]]  (SIFI)
* [[Too Big To Fail]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]

Revision as of 08:09, 13 March 2022

(SIB).

A bank whose disorderly failure would, because of its:

(i) Size,

(ii) Complexity, and

(iii) Systemic interconnectedness

cause significant disruption to the wider financial system and to economic activity in its (main) country or region of operation.


See also

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