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"not simply give myself 20,000€ cash" Only the ECB and national central banks can create € notes (by which I mean central bank cash money). Nothing is stoppin
by rahimnathwani 5y ago
"not simply give myself 20,000€ cash"
Only the ECB and national central banks can create € notes (by which I mean central bank cash money).
Nothing is stopping you from creating your own notes denominated in €, but these would be obligations (IOUs) issued by andrepd. Just like bank deposits, these notes are private money, not central bank money.
It might be tough for you to find a car dealer willing to accept these andrepd € notes, though.
"The bank creates zero-cost virtual cash"
Making loans changes banks' reserve requirements, so they're not zero-cost.
- andrepd 5y agoBut the point is that the money they create is 100% fungible with central bank banknotes! It is passed onto the economy as cash. It does not come with a tag saying "created by Santander" or whatever. > Making loans changes banks' reserve requirements, so they're not zero-cost. Okay! So give me similar requirements! Asset/liability ratios, reserve requirements, cash flow requirements, the works, to determine given my finances how much liabilities I can create.
- rahimnathwani 5y agoSure, go ahead. Instructions here: https://www.bankofengland.co.uk/prudential-regulation/new-bank-start-up-unit https://www.bankofengland.co.uk/prudential-regulation/new-ba...