Fractional reserve banking

April 29, 2023

With First Republic Bank once again teetering on the brink of collapse, I found the timing opportune to share a metaphor I recently conveyed to a friend who was asking about fractional reserve banking.

Depositing your cash in a bank is like handing your car keys to the valet parking attendant at a nice restaurant. You expect the car to be parked safely, patiently awaiting your return, when in reality…

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posted in venture capital by mark bivens

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