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Re:The digital pound: A new form of money for households and... by kasey_junk on Wednesday February 08, 2023 @03:08PM (#34714148)
Critically, your asset is the loan, the liability is the deposit credit in the borrowers account but you have zero liquidity and are actually done for when they ask for the money.

So you either need to borrow the money from another entity (if perhaps you were better at loan origination) ahead of that, or more likely use owner equity to payout the loan.

Re:The digital pound: A new form of money for households and... by neffy on Wednesday February 08, 2023 @09:20PM (#34718943)
Which is where the capital that is required to create the bank comes in, since that provides the initial (cash) liquidity.