Yet another news item, in
Yet another news item, in today’s Daily Telegraph, confirming that banks are essentially just intermediaries between savers and borrowers. It’s a report of a talk by a top official of the Bank of England in which he speculates that developments in communications technology might lead to the elimination of banks as “middle men”. Arguing that banks could become “disintermediated”, he said:
Quote:
With open access to borrower information, held centrally and virtually, there is no reason why end-savers and end-investors cannot connect directly. The banking middle men may in time become the surplus links in the chain. Where music and publishing have led, finance could follow.
No nonsense here about banks surviving because they can create money out of thin air and so don’t need savers.