Economy, asked by babskee2000, 2 months ago

why is there a trade off between liquidity and solvency

Answers

Answered by ZalimGudiya

Answer:

However, bank size plays an important role in the capital and liquidity management, and trade-off between the solvency and liquidity level is found for the larger banks. ... Namely, larger banks tend to minimize regulatory costs by avoiding simultaneous increase of liquidity and solvency.

Answered by kshitijkumarsingho8

Explanation:

ANS) However, bank size plays an important role in the capital and liquidity management, and trade-off between the solvency and liquidity level is found for the larger banks. ... Namely, larger banks tend to minimize regulatory costs by avoiding simultaneous increase of liquidity and solvency.

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