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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 plankers on Saturday September 22, 2018 @05:10AM (#18045200)
Maybe it's just me but this really seems like quibbling over semantics. Cash is fungible: banks need cash in order to lend it out and they get cash from deposits. The rest is just bookkeeping.
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Re:The Fed stalls the creation of a bank with a novel busine... by Timmah on Saturday September 22, 2018 @12:07PM (#18046527)
There's clearly not enough in deposit to sustain this model. In the US, a large majority of people don't have enough saved to last 3 months.
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Re:The Fed stalls the creation of a bank with a novel busine... by pas on Wednesday September 26, 2018 @06:59AM (#18074641)
banks need deposits to keep their leverage ratio in check.

and due to overleveraging one unit of deposit ends up as multiple units of loans.

and sure, deposits are not the main factor for lending, risk is. but usually taking deposits is cheaper than taking out a loan from an institution and lending that out. hence banks want/need deposits.

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