Cycles Against Trends (guest: Alfonso Peccatiello)
The Market Huddle
00:00
The Basics of Bank Lending
When making a loan, there is nobody that goes and checks how much deposits and reserves are out there. A bank doesn't need the reserves to produce the loan. When a bank makes a loan, it increases its asset side. And this is why so many people had trouble with quantitative easing. It's not going to make them any more or less likely to make a loan for older reasons.
Play episode from 23:22
Transcript
