explain capital structure of bank
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bank capital structure basically represent the bank choice of how to finance it's balance sheet
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Bank capital structure basically represents the bank's choice of how to finance its balance sheet, that is, what mix of equity, subordinated debt, and deposits to use. ... The higher the amount of capital in the bank's capital structure, the greater its ability to withstand these shocks..
The capital structure is the particular combination of debt and equity used by a company to finance its overall operations and growth. Debt comes in the form of bond issues or loans, while equity may come in the form of common stock, preferred stock, or retained earnings...
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