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A comment on The Fed stalls the creation of a bank with a novel business model. Parent comment

Re:The Fed stalls the creation of a bank with a novel busine... by pgorczak on Saturday September 22, 2018 @03:10AM (#18044898)
According to GP's linked article it's true when looking at the banking sector as a whole. For a single bank it seems like more of a technicality.

Also from the article:

> For example, if all of the deposits that a bank held were in the form of instant access accounts, such as current accounts, then the bank might run the risk of lots of these deposits being withdrawn in a short period of time. Because banks tend to lend for periods of many months or years, the bank may not be able to repay all of those deposits — it would face a great deal of liquidity risk.

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Re:The Fed stalls the creation of a bank with a novel busine... by neilwilson on Saturday September 22, 2018 @03:15AM (#18044913)
Withdrawals go elsewhere and the central bank system then lends them back to the original source. In aggregate you just end up with a lot of label swapping. All that changes is the cost of the liabilities.
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Re:The Fed stalls the creation of a bank with a novel busine... by pgorczak on Saturday September 22, 2018 @03:30AM (#18044946)
If I swap my labels wrong I can still go bankrupt though.
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