Banks and other financial institutions are the main intermediaries - TopicsExpress



          

Banks and other financial institutions are the main intermediaries between the supplier of funds (Households) and the demanding entities in the markets (Firms). In deed, these FIs run the motor of a countrys economy and circulate the whole markets. 90% of these FIs are highly leveraged or in other words, debt based, through deposits and inter banking loans. The reason why our countrys credit rating doesnt even exist in the rating list of S&P 500 or other credit evaluating firms, is such economic and political instability and corruption. Commercial banks credibility is so vulnerable and sensitive and any tiny slide will badly effect their reputations and will more likely lead to a bank-run as a result of which the banks will end up bankrupt or insolvent
Posted on: Tue, 11 Nov 2014 13:09:58 +0000

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