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Why not? I am 100% missing something here, but how someone trying to deposit money into the banks may increase risks? Unless there's a reason to believe the mon
by anovikov 4y ago
Why not? I am 100% missing something here, but how someone trying to deposit money into the banks may increase risks? Unless there's a reason to believe the money is stolen or otherwise could be reclaimed, which shouldn't be the case if it's coming from a major SV fund?
- bradleyjg 4y agoA deposit creates a liability for the bank. It also creates an asset that can be used to generate a return. It also creates various operational costs. The way those three things play out the more likely it is for a depositor to suddenly ask for a lot or all his money back the more risky it is for the bank. Both in terms of creating a bank run and just in terms of losing money on the relationship.