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Full Reserve Banking: What is it? - 1 views

  • This is clearly a very safe form of banking, but as described so far, the bank would simply be acting like a safe deposit box. It would not be able to make any loans.
  • Expressed like this, a mechanism for banks to make loans becomes available. The mechanism is via the use of time deposits.
    Alternativet til fractional-reserve banking (og om hvorfor det stadigvæk er muligt for bankerne at låne penge ud på trods af kravet om 100% afdækning af indskud).
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