Attributes
Purported attributes of narrow banking include -
1. no lending of deposits
2. extremely high liquidity
3. extremely high asset security
4. lower interest rates paid to depositors
5. regulatory framework with higher level of scrutiny and operational and investing restrictions
Additional criteria applied to safe banks include -
1. no derivatives
2. no off balance sheet assets
3. high degree of institutional transparency (e.g. continuous real-time disclosure of financial records)
4. capped executive salaries
5. low risk jurisdictions
Read more about this topic: Narrow Banking
Famous quotes containing the word attributes:
“The world of the egotist is, inevitably, a narrow world, and the boundaries of self are limited to the close horizon of personality.... But, within this horizon, there is room for many attributes that are excellent....”
—Ellen Glasgow (1873–1945)
“Why does not the kitten betray some of the attributes common to the adult puss? A puppy is but a dog, plus high spirits, and minus common sense. We never hear our friends say they love puppies, but cannot bear dogs. A kitten is a thing apart; and many people who lack the discriminating enthusiasm for cats, who regard these beautiful beasts with aversion and mistrust, are won over easily, and cajoled out of their prejudices, by the deceitful wiles of kittenhood.”
—Agnes Repplier (1858–1950)
“True and false are attributes of speech not of things. And where speech is not, there is neither truth nor falsehood. Error there may be, as when we expect that which shall not be; or suspect what has not been: but in neither case can a man be charged with untruth.”
—Thomas Hobbes (1588–1679)