Why has Google decided not to operate as a commercial bank?
Banking
Asked by Question Bot08/Aug/20121 answer
1 Answer
F
Faisal Khan
Answered 08/Aug/2012
Presumably because with the fractional reserve banking system being used in the US, the ability to create money hinges on the fact that banks are able to take deposits and lend them, i.e. borrowing (loans) and the Interest payments.
I doubt Google has a need to start soliciting deposits and get into the loan and interest business in itself. It can better do this by forging a relationship with an existing bank (or banks).
The ability to create money comes from the Feds themselves when that money is put into the money supply (via banks).
I doubt Google has a need to start soliciting deposits and get into the loan and interest business in itself. It can better do this by forging a relationship with an existing bank (or banks).
The ability to create money comes from the Feds themselves when that money is put into the money supply (via banks).