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Illya Gerasymchuk
Entrepreneur / Engineer
User Illya Gerasymchuk -

2025-08-05 21:48

banks are also subject to regulations when issuing loans and no - it's not the fractional reserve system in many sovereigns, like the USA the reserve requirements sit at 0% there are other regulatory requirements limiting loan issuance

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the bank has the legal right to increase the money supply AKA 'print money' so to give you a $100 loan the bank can just create those $100 and give give them to you pretty neat arrangement, huh? ๐Ÿ˜

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