Broad money and Systemically Important Bank: Difference between pages

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imported>John Grout
(→‎See also: To add Divisia money and other cross references)
 
imported>Doug Williamson
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''Economics.''
(SIB).


A measure of money supply in the economy that includes physical money (currency and coins), demand deposits at commercial banks, and other monies held in easily accessible accounts.
A bank whose disorderly failure would, because of its:


All the components making up broad money are still very liquid, and non-cash components can usually be converted quickly and easily into cash.
(i) Size,
   
   
Commonly used measures of broad money are M2 and M3.
(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 ==
== See also ==
* [[M2]]
* [[BSBY]]
* [[M3]]
* [[Global SIFI]]
* [[M4]]
* [[Systemic risk]]
* [[Narrow money]]
* [[Systemically Important Financial Institution]] (SIFI)
* [[Divisia money]]
* [[Too Big To Fail]]
* [[Money supply]]
 
[[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