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How to reduce the possibilities of bank failures? write a mimiessay please
How to reduce the possibilities of bank failures?
write a mimiessay please
Expert Solution
•new Framework should be imposed to contents in over from bail inns, to absorb losses and aim to make them more resolvable via resolution planning.
•after the bank failure, the bank should make the reducing the economic crisis and minimising costs.
•necessary measures and precaution should be taken to eliminate credit risk to ensure that the bank has enough money in their vault which can be achieved by way of capital maintenance
•To avoid the failure, banks must be solvent and possess the sufficient amount of the liquid assets to meet the demands of the depositors
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