“The shadow currency in question comes in the form of bankers’ acceptance notes, or BANs, paper issued by banks that are, in some cases, as good as cash. BANs, which are essentially IOUs in the form of bank checks, are being used as a form of ‘wildcat’ currency to increasingly finance speculation as banks and corporations alike are running short of cash. The issuance of BANs has more than doubled to 1.6 trillion yuan ($261 billion) from 636 billion yuan a year ago. State-owned banks love them because stringent statutory requirements force them to maintain high loan-to-deposit ratios, but since BANs are recorded off the books, they can increase their leverage without appearing at risk.”
Related posts:
Hospitals profiling patients using their credit card purchase data
Sanctions: More Deadly Than The Atomic Bomb?
61% of Canadians expect to Convert to Virtual Wallets by 2019
Hackers use Xbox 360 to send SWAT team to family’s home
John Kerry invokes apocalyptic ‘domino theory’ in call with House Democrats
Family of Florida man run over by police car calls for ex-cop to be charged
Boy, 12, Fined For WWII Vet Fundraising Efforts
Green Cab v. City of Bowling Green
Lawmaker: My ‘gut feeling’ says Syria got chemical weapons from Iraq
U.S. Treasury losses in perspective
Infographic: An Introduction to The Rise of Bitcoins
Households On Foodstamps Rise To New Record
Bitcoin upgrade aims for smoother e-commerce
NY Cops Rip Man from Wheelchair, Mace Him, and Beat Him
Move to Puerto Rico and Pay Zero Capital Gains Tax