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by nonconvergent 2322 days ago
Don't banks require "savers" as their source of capital for lending?
2 comments

That document is widely misread. It's true that the bank doesn't have to wait around for a saver to make a loan (they can borrow from other banks), but at the same time banks do fund most of their loans through deposits. Look at the balance sheet for any commercial bank, and you will see most of their liabilities are in the form of deposits.
In the 1940s and 1950s. Not now, at least for large US banks.