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And there are also equity capital requirements along with rules as to what counts in tiers, Basel I & II. So it would seem that banks have both reserve and capital requirements, with the capital requirements being the usual rub, as the Central Bank can supply reserves at will at a price, but should the Central Bank, for whatever reason, not supply the reserves that could make a given bank insolvent overnight. Wouldn't they normally 'resolve' that bank rather than not supplying reserves?

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Aug 28th, 2013 at 12:45:17 PM EST
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