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> they face the risk that the customer will try to take the money out in cash, or transfer it to an account at a different bank “They face the risk” seems a hu
by kgwgk 5y ago
> they face the risk that the customer will try to take the money out in cash, or transfer it to an account at a different bank
“They face the risk” seems a huge understatement. It would be quite unusual for someone to take a loan from a bank and leave the money sitting there at the bank.
- NovemberWhiskey 5y agoAlmost the entire business of a bank is to profit from maturity mismatch by borrowing short, lending long and taking the interest margin.