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They're allowed to borrow from the federal reserve which is allowed to lend an infinite amount.
by whatshisface 4y ago
They're allowed to borrow from the federal reserve which is allowed to lend an infinite amount.
- acjohnson55 4y agoBanks aren't allowed to borrow infinite amounts of money from the Fed. If they could SVB would still be ticking.
- deleted 4y ago[deleted]
- runlaszlorun 4y agoThey can borrow easily but it’s still a liability, right? I think people here the borrowing part and don’t know the liability part.
- SideQuark 4y agoThey borrow and repay with interest, so the don't borrow unless they have some use for the money that will return value to the borrower, and some profit to the bank, in order to repay the loan the bank got.