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Where does this put the trust in banks? What will the reaction be from people in other countries with money in the bank? They could start fearing that one day t
by Freestyler_3 14y ago
Where does this put the trust in banks?
What will the reaction be from people in other countries with money in the bank? They could start fearing that one day their money will be locked away from them and that the bank is going to take percentages off of their savings.
This is a decision that might push others over the edge.
- jemaddux 14y agoMy thoughts exactly. How can they justify simply taking deposits?
- nwzpaperman 14y agoFact 1: Deposits are loans from depositor to bank. Fact 2: Deposits are accounted for as liabilities on the banks' balance sheets. Fact 3: Banks write multiple loans against each dollar deposit; it has a fancy name: fractional reserve banking. Fact 4: Most countries are now on zero reserve banking and only manage their loan portfolio size by the amount of capital they have on their balance sheets.