Narrow banking is a proposed type of bank called a narrow bank also called a safe bank. Narrow banking would restrict banks to holding liquid and safe government bonds. Loans would be made by other financial intermediaries. That is, the deposit taking and payment activities would be separated from financial intermediation activities.
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Famous quotes containing the words narrow and/or banking:
“To judge from a single conversation, he made the impression of a narrow and very English mind; of one who paid for his rare elevation by general tameness and conformity. Off his own beat, his opinions were of no value.”
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