The narrowest measure of the money supply - in effect, cash on bank balance sheets - has risen by 58% since September, as you'd expect when the Bank is handing their customers all that freshly created money in exchange for the purchased gilts.
But Davidson stresses that not every lender relies on cash in a bank account, but rather cash on paper.
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He said the cheap money has compressed the bank's lending margins and spreads it makes on client transactions, as well as the returns the bank makes on cash and short-term securities.
And on Saturday afternoon, police discovered a device attached to a cash machine at the HSBC bank on Market Hill in Cambridge.
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He said the cheap money has compressed the bank's lending margins, as well as the returns the bank makes on cash and short-term securities.
For example, you didn't mention that the recent interest-rate rise on January 31st followed both an unexpected increase in the cash reserve ratio by the central bank and cuts to import duty on several items by the government in order to check inflation.
Between 1980 and 2000 you got 4% real returns on average each year from cash in the bank.
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They have been relying on some cash they took out of the bank for other purposes at Christmas time.
In June 2012, 16 million customers of RBS, NatWest and Ulster bank had difficulties with cash withdrawals, phone and online banking and debit cards, which the bank blamed on a software update.
This sort of savings plan provides a true nest egg of funds that can be drawn on at any time, like cash in the bank.
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On Sunday, Bank of Cyprus further limited cash machine withdrawals to 120 euros a day.
The unprecedented tax on bank deposits led to a run on cash machines over the weekend, as customers scrambled to protect their life savings.
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While the creation of money for the sake of it (Fed purchases of Treasuries and mortgages forcing cash onto bank balance sheets) is an economic somnolent on its own for boosting that which restrains our economic evolution, it also weighs negatively on the value of the dollar.
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That amount, he said, is comparable to the number of the bank's machines that run out of cash on a normal day in the New York area.
The central bank moved to shore up the Bank of Commerce's cash position, and on May 17 the Finance Ministry replaced Krirk-kiat with a governing board and froze the embattled institution's assets.
In effect, these efforts had diluted the effect of quantitative easing, by increasing the chance that the extra cash the Bank had injected into the system would sit idle on bank balance sheets instead of being re-lent.
The measure sparked fury in the Cypriot parliament, prompting Cypriots to withdraw money from bank cash machines and raising fears of a broader run on ailing banks.
However since a bank only keeps a small percentage of its assets in cash or short-term investments if there is a run on a bank or handful of them the overall faith in the banking system could be rattled.
One financier was caught on a security camera leaving the vaults of his bank with a cash-stuffed suitcase.
Since these accounts exist as entries on the employer's balance sheet, rather than as cash in the bank, they are still tax-free.
Also, Deutsche Bank estimates that global bond funds are sitting on 9% cash, so fund managers still have a lot of money on the sidelines to put to work.
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The move was made on behalf of an unidentified bank, causing investors to speculate about a cash shortage.
One of my bank clients has several billion dollars of cash and short-term assets on which it is earning just 27 hundredths of one percent interest.
In the wake of the Bear Stearns blow-up, rule makers will put renewed emphasis on the cash positions of major financial institutions--a traditional gauge of a bank's ability to weather crisis.
And the cost to the supplier of immediate cash payment by the bank, in respect of the implicit interest rate or discount on the bill, ought to be tiny - because the bank is in effect lending to the safe big company, which ultimately honours the bill, not to the riskier supplier.
"Big cash could start putting even more pressure on costs, " said an analyst for a major bank.
The central bank also fosters chronic inflation, so as to impose a tax on cash holdings and reduce the real value of debts.
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"A zombie company is one which is generating just about enough cash to service its debt, so the bank is not obliged to pull the plug on the loan, " explains Mark Thomas, business strategy expert at PA Consulting and author of The Zombie Economy.
Royal Bank of Scotland and Natwest customers were also unable to withdraw cash for several hours on Wednesday.
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