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>True, but that is a general property of fractional reserve banking, not specifically of maturity transformation. But maturity transformation requires FRB.
by SilasX 7y ago
>True, but that is a general property of fractional reserve banking, not specifically of maturity transformation.
But maturity transformation requires FRB.
- goatinaboat 7y agoNot if you start with enough capital. But it is drastically more efficient with FRB.