Saturday, July 4, 2015

Where do banks get the money they lend out and give mortgages from?


Where does the money which banks (like HSBC, Barclays etc.) give out to the public in mortgages and loans come from? Do they have reserves, does the government provide it, or do they have to start with enough capital to eventually build up substantial profit?

Read more: Where do banks get the money they lend out and give mortgages from?