Comment by jt2190
4 days ago
> But they promise [the creation of wealth] to the society.
It feels like you're trying to describe the "social contract" between private banks and the rest of society, but putting the full responsibility of "wealth creation" only on one party in the contract: The bank.
The other party, Society, is given access to capital when they borrow. The rate they're charged should be competitive since there is presumably more than one lender. By borrowing money they try to "create wealth", then to repay the loan principal along with a bit of the new wealth in the form of interest.
>"wealth creation" only on one party in the contract: The bank.
No, I meant to say that wealth is create by people. Banks are supposed to enforce it.