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Comment by derriz

Of course they do. That's what fractional reserve banking is all about. Banks borrow money (e.g. from depositors, on the money markets, from other banks) and lend out the money they raise while keeping a "reserve".

A typical bank's balance sheet will contain deposits on one side and loans on the other. Without deposits, or other sources of borrowing, a bank cannot lend money.

parent derriz 8 years ago

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