ABSTRACT
‘[T] his class of control liquidity ratios and the “Special Deposits” system has been so far purely ritualistic; owing to the flexibility of the banks’ investment ratios the effective control is the regulation of advances and not any liquidity ratio.’ (Richard S. Sayers, ‘The British Monetary Scene since Radcliffe’ in Monetary and Credit Policy and the Banking Community (Almquist and Wiksell, Stockholm, 1966), pp.108-9.)
