Pontus Rendahl, Lukas B. Freund, 14 December 2019

In recent years, some have claimed that banks create money ‘ex nihilo’. This column explains that banks do not create money out of thin air. From an economic viewpoint, commercial banks create private money by transforming an illiquid asset (the borrower’s future ability to repay) into a liquid one (bank deposits); they would quickly be insolvent otherwise. In addition to bank solvency representing a constraint on private money creation, banks require access to liquid reserves in order to be able to engage in money creation. 

Tamim Bayoumi, 27 October 2017

When and how did shadow banking started? In this video, Tamim Bayoumi argues it can be traced back to EU and US regulations, and also to increases in inflation. This video was recorded at the "10 years after the crisis" conference held in London, on 22 September 2017.

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