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hey this task isfor alomita asyou've done a task like this previously with order43885 the question does open up on the 2nd ofNovember so you willhave to notify me andI will send the question then from...

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hey this task isfor alomita asyou've done a task like this previously with order43885 the question does open up on the 2nd ofNovember so you willhave to notify me andI will send the question then from theiryou've got

writer only has 45 minutes to answer the question and I need them to be good with the material before then these are the readings and I need them to read this and when ready let me know and I will open the question send it to you and wait for a response of around 400 to 500 words preferably in small paragraphs
Answered Same Day Oct 23, 2021

Solution

Alomita answered on Nov 03 2021
153 Votes
BENEFITS AND COST OF BANK CAPITAL
Capital serves as a buffer stock that abso
s losses and tends to reduce the probability of the bank failure thereby protecting bank creditors and in systems with explicit or implicit public guarantees and taxpayers. Capital also has a preventive role by improving incentives for better risk management. It can limit excesses risk by increasing shareholders role. The role of bank capital also includes in minimising market discipline distortions associated with deposit insurance and implicit government guarantees .Market forces pushes the banks to maintain a fairly positive level of capital. However, these forces are sometimes not sufficient enough to ensure that the market equili
ium of the bank capital level delivers a welfare maximising allocation. Thus, the banks tend to hold less...
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