Coinucopia’s thriving banking sector
Debunking Economics - the podcast
Unraveling Banking Practices
This chapter delves into the complexities of banking, focusing on the relationship between deposits and loans, and the critical role of double-entry bookkeeping. It emphasizes how banks can lend without actual reserves and the necessity of maintaining equity for stability in lending practices. Additionally, the chapter explores the mechanics of how loans generate deposits, highlighting interbank settlements and the balancing act of assets and liabilities within the banking sector.
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