Saturday, August 30, 2008

THE SHIFTABILITY THEORY


Along grows it function of banking in economics grows also the management of bank liquidity theory from commercial loan theory to shiftability theory. Shiftability theory yells that level of defensible bank liquidity if having possession or invests legal capital in presentation of possession capable to shift sonly at other investment in obtaining liquid equipments. Like loan becomes secondary back up, secondary back up shifts becoming primary back up. This means shiftability theory suggests bank to give loan paid with notification before all applies commercial paper pawn. Thereby is explaining shiftability theory to run in financial market, which has growled, and active.
If (when there are no hard cash, hence bank sells pawn goods to loan causing obtained cash that is enough. The friction, happened because collateral which illiquid turns into liquid. Besides done said bank also often sells securities that marketable like selling super common stock. From the matter, comprehended shiftability theory to give description and confidence of management of bank until certain degree of removable bank possession in condition of needed to fulfill liquidity. However, weakness also critically expressed. Follows suggestion shiftability theory to result the happening of hit because goods retreat and or securities exchange rate, more than anything else when happened forced selling and forced liquidation. Bess awaiting what suggestion! Suggestion that (the intention? Shiftability theory suggests liquidity overcome [by] through friction of presentation of asset.

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