what’s stopping a bank from making really risky loans, give super high yields? E... | Hacker News

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		xmonkee on March 13, 2023 \| parent \| context \| favorite \| on: Joint statement by the Department of the Treasury,... what’s stopping a bank from making really risky loans, give super high yields? Everyone will go to that bank since there is no risk to them?

bandrami on March 13, 2023 [–]

Because that's not how modern banking works. This isn't George Bailey lending out deposits; retail banks don't use deposited money at all it just kind of disappears.

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