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I didn't say checking accounts, but money storage with the respective sovereign (and daily liquidity). Was actually the German finance agency (same thing for o

I didn't say checking accounts, but money storage with the respective sovereign (and daily liquidity). Was actually the German finance agency (same thing for our purposes really, as only daily risk is sovereign Germany). There were claims that lobbying by banks killed it, but it was also not very attractive in a low yield environment. Ostensibly, it was created to broaden the funding base of the Federal Republic, I think. This was the thing: https://www.deutsche-finanzagentur.de/bundeswertpapiere/bundeswertpapierarten/sonstige-finanzierungsinstrumente/tagesanleihe https://www.deutsche-finanzagentur.de/bundeswertpapiere/bund...

JumpCrisscross 3y ago
We once had postal banking in America [1]. I could see a bridge to narrow banking working if it’s restricted to natural person depositors and prohibited from paying interest or something. (And by extension, their reserves wouldn’t earn as much as their risk-taking peers.) > money storage with the respective sovereign (and daily liquidity) You can buy overnight bills in most countries. [1] https://www.investopedia.com/what-is-postal-banking-5217341 https://www.investopedia.com/what-is-postal-banking-5217341