alt Hacker News> They don’t constrain the quantity of lending. They only change the price
Which country's capital and liquidity requirements are you thinking of?
Because Basel III dictates ratios. These are hard limits on lending.
> They don’t constrain the quantity of lending. They only change the price
Which country's capital and liquidity requirements are you thinking of?
Because Basel III dictates ratios. These are hard limits on lending.
Loans create deposits, deposits are used to buy bank capital issued by banks.
There’s no hard limits. They are ratios which are preprepared because a bank knows how big its sales pipeline is and that takes time to complete.
Nothing is limited in quantity. Even the silly SLR they have in the US is a pricing limit, not a quantity - as we see every time somebody moans about how much the deficit has gone up.