Bank Structure

The structure of a bank determines, to a large degree, what it can and cannot do with and for its customers.

A large number of interactive elements make up the bank structure. What is the nature and composition of the investments the bank has made? How much does the bank have in reserves? What is the composition of the deposit liabilities of the bank? What is the amount and structure of the banks capital account

In addition to what we would define is "tangible" elements of structure, we have to take into consideration "intangible" elements of the structure. These elements would include the regulations under which the bank operates. The management structure of the bank and their philosophy of operation.

We will cover some of the more important aspects of bank structure in this section.

Limits & Losses

Bank capital and bank reserves interact to determine the limits of a bank's ability to create money. The current structure of banks virtually eliminates the risk of loan losses affecting deposit liabilities.


Draft or Summary Page

In order to maintain continuity in the structure and navigation of the site we have posted a number of pages in a draft or summary format. We are working on the final edition and will post it as soon as possible.