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Moreover, in that specific context it would certainly be the capital held by banks (or that bank in particular) "were prompted by capital rules that treat loans as riskier than bonds" - so they offloaded loans and loaded up on bonds. which put a strain on the liquidity of interbank rates, if the source is to be believed. The comment is basically "well, the rules for capital changed, so the nature of ... This aspect of What Are Headwinds Vs Tailwinds In Business plays a vital role in practical applications.
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- Is trying to learn day trading a complete waste of time?
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