Re:The Fed stalls the creation of a bank with a novel busine...
by stephen_g on Saturday September 22, 2018 @03:45AM
(#18044984)
The bank needs liquidity to settle inter-bank transfers after they've lent, some of that is deposits but they can also just borrow reserves from other banks if they need to do that.
The lending itself created new bank credit, it was never "funded". If the bank has capital adequacy, they make the loan.
The lending itself created new bank credit, it was never "funded". If the bank has capital adequacy, they make the loan.