Richard Murphy on Nostr: Banks cannot lend their depositors’ funds People like to claim that banks lend the ...

Banks cannot lend their depositors’ funds https://www.taxresearch.org.uk/Blog/2025/08/14/banks-cannot-lend-their-depositors-funds/ People like to claim that banks lend the funds deposited with them. They don't. In fact, they can't. It is technically impossible for them to do so. In this post, I explain why that is the case and how banks really create the loans that they offer to their customers.