3 ms·
what’s stopping a bank from making really risky loans, give super high yields? Everyone will go to that bank since there is no risk to them?
by xmonkee 4y ago
what’s stopping a bank from making really risky loans, give super high yields? Everyone will go to that bank since there is no risk to them?
- bandrami 4y agoBecause that's not how modern banking works. This isn't George Bailey lending out deposits; retail banks don't use deposited money at all it just kind of disappears.