And for many of us, this spot and this occasion will always be associated with the image of Yitzhak Rabin, receiving an Honorary Degree from the University immediately after the Six Day War. For me, the Hebrew University has always been special. When I graduated from the London School of Economics it was at the Hebrew University that I most hoped to teach.
Banks perform their function through financial intermediation; that is to collect funds from their owners and distribute it to borrowers. However, banks can act as more than just intermediaries. Banks can create additional liquidity through demand deposits. Such bank activities inherently contain risks, either to the bank itself, to savers, to the banking system or to the economy.