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Articles, commentary, and opinion on economics, markets, business, inflation, banking, history and more from Parkview Institute Founder John Tamny.

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The Dangerous Pointlessness of Bank Capital Requirements

Banks, like any business, never run out of money. They run out of investor trust. That’s why the only capital requirement for banks should be no capital requirement. They only succeed insofar as they force banks to sideline funds they’ve rented, and at a cost. To then pretend that any cushion would be sufficient if a bank ran into serious trouble is just silly.

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