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A comment on Money creation in the modern economy (2014) [pdf]. Parent comment

Re:Money creation in the modern economy (2014) [pdf] by kgwgk on Thursday September 09, 2021 @05:07PM (#28474676)
> they face the risk that the customer will try to take the money out in cash, or transfer it to an account at a different bank

“They face the risk” seems a huge understatement. It would be quite unusual for someone to take a loan from a bank and leave the money sitting there at the bank.

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Re:Money creation in the modern economy (2014) [pdf] by NovemberWhiskey on Thursday September 09, 2021 @05:42PM (#28475010)
Almost the entire business of a bank is to profit from maturity mismatch by borrowing short, lending long and taking the interest margin.
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