What are the most important things to understand about the banking industry?
Banking
Asked by Question Bot05/Mar/20141 answer
1 Answer
F
Faisal Khan
Answered 05/Mar/2014
That essentially banking is the same world over. Barring a few variations and flavours for each local market, it pretty much is the same dish everywhere else.
That almost all forms of banking in existence today are fractional banking. A system which is highly flawed, but hey, since we all have adopted it, nothing much we can do about it. I think the most important thing to know about the banking industry is how it came into being. The history part of it. How banking was 500 years ago, then 200 years ago, then a 100 years ago and today. You would be surprised how many bankers cannot define accurately the definition of money.
The regulatory framework is (in my opinion) an important aspect to know about. If you're going to be associated with banking, better know what the law says about it.
That eventually, this system will collapse, the fractional reserve banking system. We don't have a fix for it.
That almost all forms of banking in existence today are fractional banking. A system which is highly flawed, but hey, since we all have adopted it, nothing much we can do about it. I think the most important thing to know about the banking industry is how it came into being. The history part of it. How banking was 500 years ago, then 200 years ago, then a 100 years ago and today. You would be surprised how many bankers cannot define accurately the definition of money.
The regulatory framework is (in my opinion) an important aspect to know about. If you're going to be associated with banking, better know what the law says about it.
That eventually, this system will collapse, the fractional reserve banking system. We don't have a fix for it.