Banks make money by lending out the money they have to make more money. They can also borrow from other banks to satisfy the Fed's reserve requirements, known as the federal funds rate.
The lack of oversight in banking can lead to moral hazard for CEOs and boards, as well as risks for the individual bank, which should be monitored by regulators for systemic risk.
The bank mentioned the idea of someone having to sign away their rights to get their own money back, which is indicative of the shading practices. The firm PMPED called Pamela to inform her about the indictments and was upfront with her.
The banks need to protect 100% of deposits and cannot enter into extracurricular activities without raising money from investors. The depositor and the consumer have different expectations and banking has a fundamental market failure, which should be considered by the federal government while backstopping the banks.
Small and mid-sized banks are going through a tough time, and a slowing economy with high interest rates isn't helping. This could lead to less expansion and hiring for main street businesses, which would be bad for bank profitability.
A man discovers a high-denomination bead in his account, which he didn't expect to have.
The banking system in Shandong has been in operation for centuries and is led by a man with a lot of power. The author draws attention to the authoritarian nature of the system and the influence of state violence in upholding it.
A few challenger banks have successfully obtained banking licenses which is very rare. Starting a bank is nearly impossible.
The speaker talks about how banks can loan out money that is deposited in their accounts nine times over because of fractional reserve banking. They also mention the fear associated with losing time to earn money.
The issue of providing banking services to all people boils down to accessibility and local regulations; it may be necessary to promote the creation of local applications.
