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When the deposit is transferred away essentially the target bank becomes the depositor in the source bank. That's effectively what 'interbank lending' is. The
by neilwilson 8y ago
When the deposit is transferred away essentially the target bank becomes the depositor in the source bank.
That's effectively what 'interbank lending' is. The central bank system then centralises that peer-to-peer processes.
Deposits are swapped for capital in the same way.