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A comment on FTX Tapped into Customer Accounts to Fund Risky Bets, Setting Up Its Downfall. Parent comment

Re:FTX Tapped into Customer Accounts to Fund Risky Bets, Set... by dools on Friday November 11, 2022 @05:03AM (#33558887)
Can you describe the mechanism by which deposits held by a bank are lent to borrowers under the fractional reserve system described in that Wikipedia article?
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Re:FTX Tapped into Customer Accounts to Fund Risky Bets, Set... by lupire on Friday November 11, 2022 @03:04PM (#33566076)
"Fractional-reserve banking is the system of banking operating in almost all countries worldwide,[1][2] under which banks that take deposits from the public are required to hold a proportion of their deposit liabilities in liquid assets as a reserve, and are at liberty to lend the remainder to borrowers"
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Re:FTX Tapped into Customer Accounts to Fund Risky Bets, Set... by dools on Friday November 11, 2022 @04:21PM (#33567033)
Yes now it says:

“to lend the remainder to borrowers”

Can you describe how money that a bank has in deposits is lent out to borrowers?

[ Parent | on HN ]