Cable Forum - View Single Post

nomadking · 25-03-2012, 14:14

Part of the reason for the the low saver rates is that they can't invest/lend 100% of the money, because they have to hold some of it as capital. Then any losses from people/businesses/countries(eg Greece) defaulting have to be absorbed somehow.

25-03-2012, 14:14	#7
nomadking cf.mega poster Join Date: Apr 2004 Location: Northampton Services: Virgin Media TV&BB 350Mb, V6 STB Posts: 8,175	Re: Banks dont have enough capital Part of the reason for the the low saver rates is that they can't invest/lend 100% of the money, because they have to hold some of it as capital. Then any losses from people/businesses/countries(eg Greece) defaulting have to be absorbed somehow.