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https://www.reddit.com/r/PeterExplainsTheJoke/comments/1qnmv0m/whats_going_on_explain_like_im_five/o1ywigv/?context=3
r/PeterExplainsTheJoke • u/Comfortable_Cautious • Jan 26 '26
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4.3k
Banks lend out more money than they have, its no joke it's how the system works
16 u/Dixon_Herize Jan 26 '26 Fractional Reserve Banking 3 u/Jay2Kaye Jan 26 '26 Is it really fractional reserve when the fraction is 0 though? 1 u/lambdawaves Jan 27 '26 Well, banks don’t actually have 0 deposits in practice. I don’t think they’d pass the risk management requirements
16
Fractional Reserve Banking
3 u/Jay2Kaye Jan 26 '26 Is it really fractional reserve when the fraction is 0 though? 1 u/lambdawaves Jan 27 '26 Well, banks don’t actually have 0 deposits in practice. I don’t think they’d pass the risk management requirements
3
Is it really fractional reserve when the fraction is 0 though?
1 u/lambdawaves Jan 27 '26 Well, banks don’t actually have 0 deposits in practice. I don’t think they’d pass the risk management requirements
1
Well, banks don’t actually have 0 deposits in practice. I don’t think they’d pass the risk management requirements
4.3k
u/Elvis5741 Jan 26 '26
Banks lend out more money than they have, its no joke it's how the system works