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Bank Structure


Many misconceptions about our monetary system arise from people's misunderstanding about the structure and operation of the banking system itself. Are banks really too big to fail? Do banks operate unethically? What limits the growth of loans in deposit liabilities?

In this section, I will clarify some of the misconceptions that lead to erroneous answers to the questions I have raised above.

Limits & Losses

What limits the growth of bank deposits, what limits the growth of bank loans, what effect do bank loan losses have on those limits?

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Money & Banking