Bank finance articles and tips

Last week gold managed to climb above the $1,750 per ounce mark on the back of the co-ordinated move by central banks to boost liquidity. When the US Federal Reserve allowed central banks to swap their own currencies for US dollars, the dollar fell and gold benefited.

Despite the increase in gold prices, Chinese demand continues to be just as high. Although the Chinese government keeps very quiet about its gold reserves it is believed that China holds in excess of 33.89 million fine troy ounces as its reserves and that this is increasing rapidly. In 2007, China overtook South Africa as the world's largest gold producer and China has been making the most of this cost advantage....

There has been major debate lately regarding the financial stability of the banks. Given the large bail out of the banks coming from taxpayer money and the massive under capitalization of some of the major banks it is apparent that there is a huge need for change in some of the bank's capital reserve structures. The banks have been getting pressure from the "Basel Committee on Banking Supervision" to increase reserves and prevent another hit to the global financial system. Currently banks are required to hold 7% of their assets in reserve and they plan on increasing reserves to 8% - 9.5% total and to implement the change over a 3 year term. Based on the massive bail outs that previously happened this does not seem like near enough of a reserve and more of a political ploy to show that they are trying to make a change to benefit the global financial system. While I agree this is a step in the right direction I do not believe it is anywhere near enough.