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The legislation focuses on capital, the part of a bank's balance sheet that acts as a buffer to absorb potential losses.
The two possibilities were to drop the stable $1 a share value of money fund shares, or to add some sort of capital buffer to absorb losses in a crisis.
The same goes for the plethora of smaller local banks that can be encouraged to provide more credit to local projects but must, he says, remain "independent institutions".Hungry for capitalChina's banks are highly profitable, which gives them a buffer to absorb potential losses.
Biotechnical engineering offers an alternative to treat the edge between built and natural environment and provide a buffer to absorb erosive forces from the flow onto built structures.
The matrix plays a role as a buffer to absorb the severe volume change of Si, which may suppress its pulverization [17 19].
As its head of patent strategy Paul Lin told the intellectual property business journal Intellectual Asset Management, "Xiaomi's hardware business, like many other Chinese companies, has razor thin margins, which leaves a very small buffer to absorb patent royalty costs".
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They can prod banks with taxpayer guarantees to shrink their risks and to build up capital buffers to absorb losses.
Those firms with big enough buffers to absorb the hit to profits will win.Even so, some firms with large funding gaps may prove unviable they will have to shrink, sell out or break themselves up.
Well, the eurozone is stronger in that it has put in place financial buffers to absorb the losses that would be generated if Greece were to unilaterally renege on its debts, and even be forced out of the eurozone - which could happen if Syriza wins the 25 January elections (though the language of the left wing party has become less aggressive towards the euro).
They may act as buffers to absorb perturbations and safeguard the robustness of biological systems.
Damage assessment Reprints Related items American banks: Who's in charge here?May 7th 2009It is the buffer needed to absorb the projected losses where the tests are lax.
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