Why full-reserve banking isn't a solution to bank failures

 FRANCES COPPOLA 29 MAJ 2023

https://coppolacomment.substack.com/p/why-full-reserve-banking-isnt-a-solution


So when a bank whose liabilities consist mainly of deposits withdrawable on demand suffers a bank run, it can literally run out of money. Its ability to “create money” doesn’t help it. It can’t bootstrap its own liquidity.

This is what happened to Signature Bank NY. On Friday 10th March, $18.6 billion in deposits fled from the bank

Coppola Comment 9 May 2023

https://englundmacro.blogspot.com/2023/05/the-job-of-banks-is-to-make-illiquid.html


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