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They may not be explicitly stating it but if the bank has $100m in assets most likely they are holing ~10% of that in cash and the rest in loans/real estate/bon
by lvspiff 4y ago
They may not be explicitly stating it but if the bank has $100m in assets most likely they are holing ~10% of that in cash and the rest in loans/real estate/bonds. If 2 members of the bank each cash out $10m at the same time they have a problem - in other words two people were owning the same $ at the same time
- jnwatson 4y agoThe banks’ balance sheet reflects this. At no point are they lying about their reserve.
- JohnFen 4y ago> in other words two people were owning the same $ at the same time But that's not what that means at all. It's not even implied, unless people are just not understanding what it is that banks do or how they work. But I don't see how anyone can fault the bank for that.