Where Do Banks Get the Money When They Give You a Loan?

From Danielle DiMartino Booth Quill Intelligence with Professor Richard Werner explaining: "Where Do Banks Get the Money When They Give You a Loan?" (in 5 minutes or less)

"Is it from deposits...or is it from excess reserves at the central bank...or is it just created out of nothing, out of thin air, invented?"

Short Version: They book the loan as an asset and create a customer claim on the bank (aka a bank deposit) into your account as liability.

Not exactly how Jimmy Stewart explained it in "It's a Wonderful Life".

Full video here: https://lnkd.in/eVcK6JR

Paul Mangione Fort Schuyler Advisors www.ftschuyler.com

#banking #banks #bank #bankingindustry #bankingandfinance #bankinginnovation #bankingtech #bankingtechnology #bankingtrends #fintech #fintechnews #financialservices #payments #financial #money #finance #business #innovation #technology #loans #lendingsolutions #lending #bitcoin #btcusd #btc #btcnews #bitcoinnews #crypto #cryptocurrency #cryptocurrencynews #cryptocurrencies #cryptonews #cryptoinvesting #cryptomarket #cryptocurrencytrading #cryptoasset #cryptotrading #fractionalreserve #economics #economic #economy #economictrends #economist #economists #economictheory #theory #currency #investing