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How did you square your definition with the fact that some banks make no loans at all? You don't need to be a bank to make a loan, I can lend money. Me and yo
by ClumsyPilot 4y ago
How did you square your definition with the fact that some banks make no loans at all?
You don't need to be a bank to make a loan, I can lend money.
Me and you are regulated more than the banks are, because we are not allowed to do things banks do.
Legally the 'bank' means you have a banking licence. That is all.
This licence allows you to create money. This is a huge superpower, but there are terms and conditions attached to make sure it doesn't break the whole economy.
- hgomersall 4y agoThey also provide payment services in the modern world, and it's not intended to be definitional. You can create money, you just can't pass that around the monetary framework. That's what the license is really about. It doesn't feel we disagree. What you wrote I totally agree with.