[GJM] Which Types of Banks do not use "Fractional Reserve Banking?"

[robert searle]

Dear All,

     I expect Chris Cook would be able to answer this
question, and if possible list the type of banks
involved (hopefully). Though most commercial banks
create money out of thin air there are a tiny minority
which do not. In other words, they may actually use
existing money deposited with them. I believe rightly,
or wrongly this is true of Credit Unions.

I also recall how Muhammad Yunnus set up his first
bank to help the poor. He seem to indicate that he had
some starting capital which could be lent, and paid
back with interest ofcourse. He did not have it
created out of thin air. Again light on this would be
gratefully acknowledged with thanks.

Robert Searle.


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