Corpus ID: 168969379

Default Insurance Notes to Implement Venture Banking

  title={Default Insurance Notes to Implement Venture Banking},
  author={B. Hanley},
  journal={arXiv: General Finance},
  • B. Hanley
  • Published 2017
  • Business
  • arXiv: General Finance
I propose creation of a venture bank, able to multiply the capital of a venture capital firm by up to 47 times, without requiring access to the Federal Reserve or other central bank apart from settlement. This concept rests on insuring loans to expand Tier 1 and 2 capital. Profitability depends on overall portfolio performance, availability of default insurance notes, cost of default insurance, and the multiple of original capital (MOC) adopted by the venture bank. If the form that uses… Expand