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June 04, 2018, 02:00:45 PM |
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The capital of the traditional bank in many cases is divided into several types. The
reasons of that division are two. First, the banks try to attract as many different client
types as possible. Second, the banks try to diversify its risks. In process of capital
formation the banks focus on such capital type that will give them minimum of the risks.
Generally, in the traditional bank market there are three types of the capital with
minimum risks: Senior Secured Debts, Term Deposits and Corporate Bonds.
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