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Why do we need private banks at all? | 133 comments (133 topical, 0 editorial, 0 hidden)
Re: Why do we need private banks at all? (none / 0)
Can you clarify for me whether in your understanding  in the normal course of events, deposits are sources of profit for banks or just a tiresome service provided to lure borrowers into the shop?
by rootless2 on Wed Feb 29th, 2012 at 04:36:11 PM EST
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Re: Why do we need private banks at all? (none / 0)
In the ordinary course of events, taking deposits makes the bank money, because the government - by way of the central bank - subsidises the handling of deposits through maintaining a non-zero interbank rate.

Were the government to run a zero interest rate policy -which it could and, in my opinion, should- taking deposits would become a loss-leader for other activities (or simply go away) unless deposit handling were explicitly rather than implicitly subsidised.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Thu Mar 1st, 2012 at 02:41:16 AM EST
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Why do we need private banks at all? | 133 comments (133 topical, 0 editorial, 0 hidden)
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