> The deposit is only a liability for the bank if it is paid to another bank or withdrawn in physical cash. Otherwise it's all make believe. Do you think the m

> The deposit is only a liability for the bank if it is paid to another bank or withdrawn in physical cash. Otherwise it's all make believe. Do you think the majority of loans just sit in borrower's accounts, instead of getting paid to home sellers, vehicle sellers, other debtholders, etc? That banks are just playing with pretend money because somewhere down the chain someone might park it back in the same bank and not touch it for a long time? Loans are entirely about getting that money sitting in deposit out into circulation instead, yes, but you can't simply write those loans without having "real money" to give out for them. That seems like a good, profitable, impossible-to-screw-up business model, the way you describe it, without needing any actual cash funding. Sooo why don't you start one of these banks that doesn't need funds and report back.