gold becomes a tier 1 asset class for banks, page-25

Hi Timber,

I'm a novice at the requirements for banks, but thought perhaps this might be relevant.


(Davies notes that this must not be confused with the liability side of the equation that Tier 1 capital addresses. Gold on the liability side would be classified as a currency deposit in the same way as a cash deposit, which is stated on the liability side of a bank's balance sheet -- that is, a form of debt.)


This comes from (worth reading) article -


Revolting PIIGs, A Golden Hope?
by Ben Davies (Co-Founder and CEO)
HINDE CAPITAL
June 25th,2012.



cheers


dub