Bank runs: A risk mismanagement perspetive: A note
Journal Article
2008
Permanent link to this Item
Authors
Journal Title
South African Journal of Business Management
Link to Journal
Journal ISSN
Volume Title
Publisher
Publisher
University of Cape Town
Department
Faculty
License
Series
Abstract
This paper demonstrates that the fractional reserve system is a source of instability in commercial and investment banks. The purpose of investment banks is to enhance completeness of financial markets and thereby contribute to an efficient allocation of risk. When funds are raised through commercial banks to transact in securities of investment banks, this can cause instability to commercial and investment banks as is experienced currently in world financial markets.
Description
Reference:
Abraham, H. (2008). Bank runs: A risk mismanagement perspective: A Note. South African Journal of Business Management, 39(4), 63-65.