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A comment on Radical Swiss financial reform campaign faces defeat. Parent comment

Re:Radical Swiss financial reform campaign faces defeat by jganetsk on Monday June 11, 2018 @10:46AM (#17284655)
"but I'm wondering if it's possible to put a soft lock (like a semi-fixed-deposit) on portion of a customers deposits and use that to finance lending"

Fractional reserve banking? https://en.wikipedia.org/wiki/Fractional-reserve_banking

Aka, the way things already work.

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Re:Radical Swiss financial reform campaign faces defeat by spiralx on Tuesday June 12, 2018 @12:47PM (#17295088)
No, because bank lending is not dependent on customer deposits or bank reserves - lending occurs first, then reserve requirements are met afterwards. See for instance this research paper from Standard & Poor's:

Repeat After Me: Banks Cannot And Do Not "Lend Out" Reserves

https://www.kreditopferhilfe.net/docs/S_and_P__Repeat_After_...

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