3 ms·
There is no bottleneck, the opposite is true! Banks need only 10% funding, yes, which means for a one million deposit they can create 9 million in debt, thereby
by marton78 5y ago
There is no bottleneck, the opposite is true! Banks need only 10% funding, yes, which means for a one million deposit they can create 9 million in debt, thereby reducing the cost of money, thereby inflating asset prices.