|
|
|
|
|
|
by mdemare
3121 days ago
|
|
|
You guess wrong. If a bank does not have enough liquid capital, it can borrow from the central bank. If the value of its deposits exceed the value of its loans, it’s insolvent. Stockholders lose everything. Depositors are insured up to $250,000, which is enough to prevent them from participating in bank runs. |
|
|