Illya Gerasymchuk
Entrepreneur / Engineer
the bank needs a liability to fund an asset when a bank gives you a loan it gains both an asset and a liability in the same amount let's say you get a loan for $100
how banks work? bank's business model is very simple: 1️⃣ Take liability 2️⃣ Use liability to buy asset 3️⃣ Pocket the spread/carry all of the bank's assets are financed by its liabilities
