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RE: The Mathematics of Fractional Reserve Banking

in #mathematics7 years ago

The balance sheet of the bank always has to balance - remember the bank lends to the same people it borrows from (as for every lender there is a borrower) so that's impossible. The more money the bank makes, the more the equity holders and deposit holders get. It's a circle that balances out to 0.

https://steemit.com/finance/@gleepower/the-definition-of-a-bank