Comment by Retric
9 years ago
No, you can still make a loan by buying a bond etc.
I simply feel banks have conflicting goals as they need to be 'good at' customer service and making loans. This creates a lot of poor incentives and economic distortions.
Yes, it will be very convenient for people to issue bonds when they need a loan to buy a house or start a business...
Credit Cards are an example of non bank loans.
The difference is people fronting money for loans would need to take on real risks without FDIC protection or have safe deposits but need to pay for bank services.
You know that the large majority of credit card loans are given out by banks, right? https://www.nilsonreport.com/upload/TopIssuersofUSGPCC.3.jpg
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