Comment by 01HNNWZ0MV43FF
4 days ago
You can't loan more than you have, but fractional reserve means you can loan most of your assets while only keeping some liquid: https://en.wikipedia.org/wiki/Fractional-reserve_banking
4 days ago
You can't loan more than you have, but fractional reserve means you can loan most of your assets while only keeping some liquid: https://en.wikipedia.org/wiki/Fractional-reserve_banking
You can when you control the ledgers. Even more easily when digital. Over 90% of all currency is digital.