Comment by Etheryte
7 months ago
Banks have very strict legal rules about minimum balance sheets. They don't have to have 100% coverage, but that doesn't mean it isn't there.
7 months ago
Banks have very strict legal rules about minimum balance sheets. They don't have to have 100% coverage, but that doesn't mean it isn't there.
A fraction of it, it is called fractional reserve banking for a reason.