Latest topics
» The Windsors Blackmailed by their Daughter-in-Law?
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans EmptyToday at 5:29 am by bs4ever

» SCAMMER ALERT! - Judy aka Quartz Crystal the Source Player is PLAYING You for DONATIONS! - PLUS A CULT MEMBER CONVERSATION
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans EmptyYesterday at 11:22 pm by Malisa

» Cult Alert - Sourcetruth Enterprises Inc. Continues To Expand
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans EmptyYesterday at 10:51 pm by RamblerNash

» Is Corey Goode a Fraud?
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans EmptyYesterday at 9:49 pm by PurpleSkyz

» Shrout Update!
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans EmptyYesterday at 6:17 pm by topspin2

» UFO News ~ Multiple Mysterious Lights Seen In Texas plus MORE
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans EmptyYesterday at 1:59 pm by PurpleSkyz

» Easy To Make Smart-Meter Shield Cuts EMF 95%!
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans EmptyYesterday at 1:53 pm by PurpleSkyz

» SOURCE PLAYERS, ENTITIES & SOULLESS ONES Whats The DIFFERENCE?
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans EmptyYesterday at 12:34 pm by PurpleSkyz

» Who Targeted Ukraine Airlines Flight 752?
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans EmptyYesterday at 11:36 am by PurpleSkyz

» NIBIRU News ~ Red Planet Recent Highlights plus MORE
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans EmptyYesterday at 11:33 am by PurpleSkyz

» Global Protest Day against 5G: 205 events in 195 cities planned so far
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans EmptyYesterday at 11:02 am by PurpleSkyz

» Nephilim debunked
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans EmptyYesterday at 10:41 am by PurpleSkyz

» FCC Broke Environmental Law By Approving SpaceX Satellites To Blast 5G And WiFi At Earth
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans EmptyYesterday at 10:34 am by PurpleSkyz

» EGM - Electro-Gravi-Magnetics - Practical Engineering Principles of the Polarizable Vacuum
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans EmptyYesterday at 10:22 am by PurpleSkyz

» Sun Shoots Out A Coronal Mass Ejection
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans EmptyYesterday at 10:20 am by PurpleSkyz

» In Plain Sight: The Dark Occult & Technology (A Psychic's Reaction to Geordie Rose of DWAVE)
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans EmptyYesterday at 10:18 am by PurpleSkyz

» SpaceX explodes a rocket to show it's launch escape system is safe
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans EmptyYesterday at 10:16 am by PurpleSkyz

» This infamous quote is ascribed to William Casey, the CIA Director between 1981-1987
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans EmptyYesterday at 8:46 am by topspin2

» Hey SourceShill - I think Judy wants you to STFU !
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans EmptyMon Jan 20, 2020 11:20 pm by PurpleSkyz

» Stealth UFO Archives: X-Tech and the Presidents JFK Nixon Reagan Trump Link Revealed!
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans EmptyMon Jan 20, 2020 9:30 pm by PurpleSkyz






CURRENT MOON




You are not connected. Please login or register

OUT OF MIND » THE INSANITY OF REALITY » GLOBAL FINANCIAL COLLAPSE » Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans

Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans

Go down  Message [Page 1 of 1]

PurpleSkyz

PurpleSkyz
Admin
← Anna von Reitz – Alaska

Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans

Posted on October 27, 2014 by David Robinson
Many authorities have said it: banks do not lend their deposits. They create the money they lend on their books.
Robert B. Anderson, Treasury Secretary under Eisenhower, said it in 1959:
When a bank makes a loan, it simply adds to the borrower’s deposit account in the bank by the amount of the loan. The money is not taken from anyone else’s deposits; it was not previously paid in to the bank by anyone. It’s new money, created by the bank for the use of the borrower.
The Bank of England said it in the spring of 2014, writing in its quarterly bulletin :
The reality of how money is created today differs from the description found in some economics textbooks: Rather than banks receiving deposits when households save and then lending them out, bank lending creates deposits.
. . . Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money.
All of which leaves us to wonder: If banks do not lend their depositors’ money, why are they always scrambling to get it? Banks advertise to attract depositors, and they pay interest on the funds. What good are our deposits to the bank?
The answer is that while banks do not need the deposits to create loans, they do need to balance their books; and attracting customer deposits is usually the cheapest way to do it.
Reckoning with the Fed
Ever since the Federal Reserve Act was passed in 1913, banks have been required to clear their outgoing checks through the Fed or another clearinghouse. Banks keep reserves in reserve accounts at the Fed for this purpose, and they usually hold the minimum required reserve. When the loan of Bank A becomes a check that goes into Bank B, the Federal Reserve debits Bank A’s reserve account and credits Bank B’s. If Bank A’s account goes in the red at the end of the day, the Fed automatically treats this as an overdraft and lends the bank the money. Bank A then must clear the overdraft.
Attracting customer deposits, called “retail deposits,” is a cheap way to do it. 
But if the bank lacks retail deposits, it can borrow in the money markets, typically the Fed funds market where banks sell their “excess reserves” to other banks. These purchased deposits are called “wholesale deposits.”
Note that excess reserves will always be available somewhere, since the reserves that just left Bank A will have gone into some other bank. The exception is when customers withdraw cash, but that happens only rarely as compared to all the electronic money flying back and forth every day in the banking system.
Borrowing from the Fed funds market is pretty inexpensive – a mere 0.25% interest yearly for overnight loans. But it’s still more expensive than borrowing from the bank’s own depositors.
Squeezing Smaller Banks: Controversy Over Wholesale Deposits
Finish reading
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans V3Zm7wjmoZk?utm_source=feedburner&utm_medium=email
The House of Rothschild – the Money’s prophets – full 56min – YouTube


Thanks to: http://mainerepublicemailalert.com



  

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum