This article discusses the basic concepts around leveraged financial firms (entities). This is expected to turn into an early section in my banking primer. The key take away from this discussion is that the distinction between bank and non-bank finance is somewhat smaller than is popularly suggested. The difference lies in the infrastructure needed to gather and service deposits, but the balance sheet structure can be largely replicated by non-bank financial firms. This explains why banks and non-banks blend into each other in the absence of regulations to the contrary.
Maybe this will be in the primer but any chance of getting some visual depiction of how balance sheets change when you run through these examples? Especially when explaining how money market paper issuance = 'money creation' and how this differs from bank money creation
Maybe this will be in the primer but any chance of getting some visual depiction of how balance sheets change when you run through these examples? Especially when explaining how money market paper issuance = 'money creation' and how this differs from bank money creation
Tables are the hardest thing for me to format. I would do them last, once I am sure about the text around them.