3 ms·
There's clearly not enough in deposit to sustain this model. In the US, a large majority of people don't have enough saved to last 3 months.
by Timmah 8y ago
There's clearly not enough in deposit to sustain this model. In the US, a large majority of people don't have enough saved to last 3 months.
- pas 8y agobanks need deposits to keep their leverage ratio in check. and due to overleveraging one unit of deposit ends up as multiple units of loans. and sure, deposits are not the main factor for lending, risk is. but usually taking deposits is cheaper than taking out a loan from an institution and lending that out. hence banks want/need deposits.