abro
It might help if the banks owned gold. Selling gold to the central banks would drop their overall asset levels, allowing them to repay deposits (reduce debt). This would increase their regulatory capital ratios (regualtaory capital levels being the Asset values netted against deposits.)
But banks don't own that much gold!
It might help if the central banks printed money and bought other assets that banks do own, like bond! (Oops! I think that's QE!)
Cheers
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abroIt might help if the banks owned gold. Selling gold to the...
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