Banks began simply as a depository facility, a place to leave their piles of money or gold so as not to have to carry it all around with them.
Only after “merchants” began storing money for a fee which are negative rates did was it discovered that it was profitable to then lend that money pile at a fee to someone else.
This is Giro banking and how it was born. A giro bank is where money changes hands between two people and the money does not leave the bank.
Read More about the Financial system Armstrong Economics where our mission is provide a public service for the average person to comprehend the global economy and for professionals to access the most sophisticated international analysis possible.
Only after “merchants” began storing money for a fee which are negative rates did was it discovered that it was profitable to then lend that money pile at a fee to someone else.
This is Giro banking and how it was born. A giro bank is where money changes hands between two people and the money does not leave the bank.
Read More about the Financial system Armstrong Economics where our mission is provide a public service for the average person to comprehend the global economy and for professionals to access the most sophisticated international analysis possible.
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