Sure, but you don't get a useful model of a bank by only looking at the short term like this.
> The point is that when banks receive deposits, in the short term, their assets/liabilities doesn’t change.
They do change: Cash is a (risk-free, modulo safe storage) asset, the deposit is a liability. This has consequences for all kinds of metrics vital to the running of a bank.
Re:FDIC Takes over Silicon Valley Bank
by incompatible on Friday March 10, 2023 @07:27PM
(#35103430)
Correct, although if they don't do something to make money with the cash they take in as deposits, they won't have sufficient income to cover their expenses, let alone make a profit.
The point is that when banks receive deposits, in the short term, their assets/liabilities doesn’t change.