".......Although commercial banks create new money (deposits) when they lend, they had to make sure that their liabilities (+ equity capital) were adequate to cover their total asset base to avoid being insolvent and being forced into bankruptcy........"
It must be corrected as
"......Although commercial banks create new money (deposits) when they lend, they had to make sure that their ASSET BASE (+ equity capital) were adequate to cover their total LIABILITIES to avoid being insolvent and being forced into bankruptcy........"
I think this sentence is wrong:
".......Although commercial banks create new money (deposits) when they lend, they had to make sure that their liabilities (+ equity capital) were adequate to cover their total asset base to avoid being insolvent and being forced into bankruptcy........"
It must be corrected as
"......Although commercial banks create new money (deposits) when they lend, they had to make sure that their ASSET BASE (+ equity capital) were adequate to cover their total LIABILITIES to avoid being insolvent and being forced into bankruptcy........"