5 ms·
To back up a little further, the purpose of a bank before fractional reserve banking was to store gold and other valuables safe from theft… Fractional reserve
by goodluckchuck 3y ago
To back up a little further, the purpose of a bank before fractional reserve banking was to store gold and other valuables safe from theft…
Fractional reserve banking began when the banks started converting the deposits to issue loans without the depositor’s knowledge or consent… and that’s largely the way it remains.