Responding to all of the responses here: this is not correct. Banks explicitly do not 'need money' to lend. They need equity to maintain their capital adequacy

Responding to all of the responses here: this is not correct. Banks explicitly do not 'need money' to lend. They need equity to maintain their capital adequacy ratio to be able to lend. Banks literally beget money and are governed only by regulation. Non-bank institutions cannot do so. Deposits are merely a less-expensive-than-'fed-funds' liability. Here to understand this popular misconception: https://news.ycombinator.com/item?id=28473807 https://news.ycombinator.com/item?id=28473807