Question
Access to additional capital: since the bank was relatively small, it access to capital markets was limited. However, this limitation was not considered to be
Access to additional capital: since the bank was relatively small, it access to capital markets was limited. However, this limitation was not considered to be restrictive due to the fact that the other banking company could be relied upon to assist them with capital funds. The bank indicated that it was sensitive to current shareholders desire to avoid the diluting effect of new capital. Under Central bank rules a bank holding company is expected to be a source of strength to it subsidiary in terms of capital or liquidity
what assumptions and recommendation can be made given the above information
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