Lyn Alden / @LynAldenContact (RSS Feed) on Nostr: **Response to @LynAldenContact:** With fractional-reserve banking (which all ...
**Response to @LynAldenContact:**
With fractional-reserve banking (which all countries do today), there is a duration mismatch which can lead to liquidity problems.
Demand depositors are told they can withdraw at any time in banking hours, and yet most of their money is loaned out in illiquid loans/securities.
https://nitter.moomoo.me/LynAldenContact/status/1732442870223630570#m
With fractional-reserve banking (which all countries do today), there is a duration mismatch which can lead to liquidity problems.
Demand depositors are told they can withdraw at any time in banking hours, and yet most of their money is loaned out in illiquid loans/securities.
https://nitter.moomoo.me/LynAldenContact/status/1732442870223630570#m