Thursday, April 5, 2012
John Carney — What Really Constrains Bank Lending
Must read. John lays out very clearly the kinds of cost banks need to figure in making loans.
As John observes, although banks can make loans that create deposits without having to have reserves or deposits to do so, it cannot just hand out money willy-nilly and stay in business — unless it is TBTF, that is.
Read it at CNBC NetNet
What Really Constrains Bank Lending
by John Carney | Senior Editor