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Pretty sure most banks don't do too much physical money storing. I've used cash once in the past couple months; someone gave me a 20 to pay me back for somethin
by ihodes 16y ago
Pretty sure most banks don't do too much physical money storing. I've used cash once in the past couple months; someone gave me a 20 to pay me back for something. I got rid of it ASAP.
But yeah, they're using other banks for their existing infrastructure like ATMs and treasury dealings. I'm curious about their revenue margins with that setup, but I've got to believe that there's a place for profit there.
- varikin 16y agoIf I remember from my economics classes correctly, a bank has to have around 10% of its assets liquid. Meaning if you have $100,000 dollars in the bank, they need to have $10,000 in cash on hand. Of course, the 10% is all assets, not just yours, so 100 customers have a total of 1 million dollars, the bank needs $100,000 on hand for withdrawals. That is just a broad overview that I remember from college. The numbers probably are wrong (10% is a nice round number) and I don't know how that works with a bank with 1000's of branches across the country. Of course I could be completely wrong, since I didn't really care about economics at the time.