> The central business problem for retail banks is how to earn more from deposits than they pay in interest, and to do so at a scale of billions of dollars.
Far from it. They are not deposit constrained, no matter how much mainstream economics likes to think so.
Far from it. They are not deposit constrained, no matter how much mainstream economics likes to think so.
http://www.bankofengland.co.uk/publications/Documents/quarte...
See page 2 onwards, "money creation in reality". And note that this is published by the Bank of England.