Because to create money, they
December 2025 › Forums › General discussion › 100% reserve banking › Because to create money, they
June 13, 2013 at 2:50 pm
#86809
Inactive
Because to create money, they have to have someone to lend to. Also by the act of lending, their account at the Bank of England would be reduced (assuming the borrower spent the money with someone at another bank), unless they can rely on getting back a corresponding increase in new deposits and / or loan repayments. It is similar to when Northern Rock went bust (why did they just not create the money themselves ?)
