Re:Risky bank debt makes customers safer
by JumpCrisscross on Monday May 29, 2023 @06:20AM
(#36112497)
> fundamentally the quoted statement is wrong except in a very narrow niche
That niche being money and banking [1]. The comment you dismiss is correct: “Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money.”
That niche being money and banking [1]. The comment you dismiss is correct: “Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money.”
[1] https://www.bankofengland.co.uk/-/media/boe/files/quarterly-...