Thursday, October 24, 2013

what are rules for the banks in usa related to banks investment in capital market? and IMF Conference: Sustainable Investment scaling up in LIC

what are rules for the banks in usa related to banks investment in capital market?



the investment directly and indirectly. lending for capital market activities. what is the capping for the banks investment in capital market?
pls hlp me
i want to know how much banks in usa can lend to the brokers or other market participants.


Investment best answer:

Answer by Ashley R
This question is very unclear. There is no limitation on anybody for investments into the "capital markets" and you should understand that the "Capital Market" is not a singular thing, it's a description for a whole bunch of markets that are used by Corporations and Governments to raise funds by making long term loans.
Banks lend in Capital Markets, but generally firms will attempt to raise money through Stocks or Corporate paper instead because the interest is lower to do so.


Edit: Banks can lend however much they want. They are required by the Federal Reserve to keep a reserve supply of cash for every day banking needs but so long as they are in the positive side of accounting they can loan however much they have.


Investment

IMF Conference: Sustainable Investment scaling up in LIC
Investment

Image by International Monetary Fund
IMF Conference: Sustainable Investment scaling up in Low Income Countries



Orignal From: what are rules for the banks in usa related to banks investment in capital market? and IMF Conference: Sustainable Investment scaling up in LIC

No comments:

Post a Comment