← Back to context Comment by immibis 1 year ago Most people deposit in a bank by transferring from another bank. There is more than one bank. 1 comment immibis Reply neilwilson 1 year ago Now do the balance sheet journals for such a transfer. [0]Then you'll see that for a bank to transfer to another bank the destination bank has to take over the deposit in the source bank (or swap that liability with another bank somewhere).You have an infinite regress in your thinking.[0]: https://new-wayland.com/blog/why-banks-pay-interest-on-depos...
neilwilson 1 year ago Now do the balance sheet journals for such a transfer. [0]Then you'll see that for a bank to transfer to another bank the destination bank has to take over the deposit in the source bank (or swap that liability with another bank somewhere).You have an infinite regress in your thinking.[0]: https://new-wayland.com/blog/why-banks-pay-interest-on-depos...
Now do the balance sheet journals for such a transfer. [0]
Then you'll see that for a bank to transfer to another bank the destination bank has to take over the deposit in the source bank (or swap that liability with another bank somewhere).
You have an infinite regress in your thinking.
[0]: https://new-wayland.com/blog/why-banks-pay-interest-on-depos...