2024-11-07 13:35:47
This is a very wrong information... loans are backed by investors who give the money to banks. [Link] NEEDS_MORE_RATINGS(11-1-6) Author
2024-11-07 16:11:31
The “backing” for it is the borrower's promise in the loan contract to pay, it's not “out of nothing.” Banks have money to loan out from deposits and equity, and borrowing from other banks if necessary. [Link] NEEDS_MORE_RATINGS(5-0-1) Author
2024-11-07 16:41:29
Banks lend first and look for reserves later, i.e from the public through deposits. Mobile app offering loans which are not backed by collateral risk shutting down from bad debts. [Link] NEEDS_MORE_RATINGS(6-0-4) Author