Hacker News new | ask | show | jobs
by kasey_junk 1203 days ago
The US average loan to deposit ratio sits around .8. SVB is at around .45.

Loan to deposit ratio is orthogonal to reserve ratios, which is orthogonal to capital requirements.

It’s not that banks are loaning out more than their deposits that creates new money, it’s that they are loaning out money _at all_ that does.