Along with wholesale debt and deposits, equity is one of banks' three main sources of funds.
Household financial assets, including bank deposits, equity holdings and private pension savings, far exceed the debt.
Deposits, equity and long-term debt now make up almost two-thirds of Morgan Stanley's balance-sheet liabilities, compared with around 40% at the end of 2007.
Three-quarters of the megabanks' assets are now financed by sticky deposits, equity or long-term debt.Yet as students of Japan's zombie banks know, nasties may lurk in the megabanks' $7.4 trillion of assets (equivalent to about half of America's GDP).
Burch says buyers usually have at least a 10% deposit – either equity from another property or, among first-time buyers, from the Bank of Mum and Dad.
Saffron's interest-only mortgages are only available up to 70% loan-to-value (LTV) – ie, you must have a 30%-plus deposit or equity stake.
HSBC's sub-1% mortgage is only available up to 60% LTV, which means you need a deposit, or equity in your property, of 40%.
If through the daily cash-settlement process, losses in the account reduce the funds on deposit (or equity) below the maintenance margin level, the brokerage firm will require that additional funds be deposited.
So far, no decision seems to have been taken, beyond the plan to convert the Cyprus Popular Bank's uninsured deposits into equity and freeze the Bank of Cyprus's uninsured deposits.
The money to do this will come from converting a portion of its uninsured deposits into equity.
