Banks donít lend out depositors' money.

They issue credit in the same way that businesses issue credit to customers.

The costs of issuing credit are a credit risk cost to cover bad debt and an admin cost - minimal and already collected by banks.

Interest for depositors has no mathematical basis.





Banks donít lend out depositors' money.

They issue credit in the same way that businesses issue credit.

The costs of issuing credit are a credit risk cost to cover bad debt and an admin cost - minimal and already collected by banks.

Interest for depositors has no mathematical basis.