Re:Why America will soon see a wave of bank mergers
by bradleyjg on Tuesday May 02, 2023 @01:03PM
(#35790735)
There’s no way to provide risk free returns on demand deposits, other than the government just deciding to give away money. Hedging doesn’t magically eliminate risk at zero cost.
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Re:Why America will soon see a wave of bank mergers
by lesuorac on Tuesday May 02, 2023 @02:01PM
(#35791690)
Sure, in the technically true way.
However, in practical terms banks have done a great job of making loans that get repaid more often than not. People are ok with having a bank that pays 0% interest and uses the difference between loan's rate and the real rate to operate successfully; bankers are not ok with leaving money on the table.