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Re:Facebook, Libra, and the Long Game by godson_drafty on Tuesday June 25, 2019 @01:40PM (#20276753)
Not sure that's correct though. For banks, deposits are liabilities, while assets are loans and cash-on-hand, which they are required to hold fractionally against the total amount of their deposits. In this example, the bank is holding $200, has assets of $800, and liabilities of $1000. Adding it up, you have ($200 + $800) - $1000 == $0.
Re:Facebook, Libra, and the Long Game by projektfu on Wednesday June 26, 2019 @07:04AM (#20283768)
In reality the bank can take your $1,000 and write loans for $9,000 or more. It’ll have net assets of whatever capital was paid in plus loans minus deposits.