freeman67:


The time is almost past ooo. The offer was reviewed to 11.3155% according to what Coronation MB sent to me. It closes by Monday 12/09/22. However, if your money is ready you can mail Afrinvest 'afrinvest securitiesltd @afrinvest. com' or Coronation Merchant Bank ' ibteam @ coronationmb. com ' to get details.


Sorry the picture is not clear.

ositadima1:


Banks can't literally print money but they do create new money when they make loans.

In fact, the vast majority of money in the economy today comes from these loans created by banks.

However, when a loan is repaid, that money disappears from the economy.

To understand the process of money creation, let us create a hypothetical system of banks. We will focus on two banks in this system: Anderson Bank and Brentwood Bank. Assume that all banks are required to hold reserves equal to 10% of their customer deposits. When a bank's excess reserves equal zero, it is loaned up.

Anderson and Brentwood both operate in a financial system with a 10% reserve requirement. Each has $10,000 in deposits and no excess reserves, so each has $9,000 in loans outstanding, and $10,000 in deposit balances held by customers.

Suppose a customer now deposits $1,000 in Anderson Bank. Anderson will loan out the maximum amount (90%) and hold the required 10% as reserves. There are now $11,000 in deposits in Anderson with $9,900 in loans outstanding.

The debtor takes her $900 loan and deposits it in Brentwood bank. Brentwood's deposits now total $10,900. Thus, you can see that total deposits were $20,000 before the initial $1,000 deposit, and are now $21,900 after. Even though only $1,000 were added to the system, the amount of money in the system increased by $1,900. The $900 in checkable deposits is new money; Anderson created it when it issued the $900 loan.

I hope this matter can be put to rest, abeg o.

Frangel:
Good we agree banks can't literally print money.

Your concept of 'creating' is based on credit. What credit does is to allow the borrowers produce/consume at a higher capacity than they ordinarily could. But in all, existing cash is transferred from one end to another to pay for this.

In your illustration, total deposits received was $21,000. Out which 10% ($2,100) was retained by both banks. Total loans was $18,900, but out of that $900 found its way back to one of the banks. Hence, cash with the banks is now $2,100 + 900 = $3,000. Cash still with borrowers is $18,900 - 900 = $18,000. Total cash with banks and borrowers is $3,000 + 18,000 = $21,000, which is equally the total deposits ab initio, but in different hands.

The banks did not 'print or create' new money but redistributed the existing money. Might be voodoo if they create money through loans and the money so created disappears upon repayment of such loans.�

ositadima1:
Damn

ibechris:



Osita rest oh.

Make we move to another topic.

Oshokhai69:


Who told you printing money increases the national debt

ositadima1:


Ok, Sir.

Let me say one last thing oh. Imagine Gtb bank informing you that your precious money in dat ur account has been halved cause part of it was lent to a debtor.

ositadima1:


I agree it is a hard one to understand. The error in your reasoning is that the depositors account is a different entity independent of loans issued. Anderson bank loaning out $900 to a debtor does not change d customers deposit balance, it is still $1000 !

The concept of money multiplier is a topic in monetary economics. It is thought in schools. I didn't create the concept.

just2endowed:
who noiticed that stanbic asset mgt has not paid interest on mmf for this month>

Frangel:
Pardon me, I'm not a banker nor an economist. I just want to understand and learn. Strictly from your illustration and your point now, where will the banks get the money to pay their depositors total $21,000 assuming they all coming at the same time? Print money?

Mind you, my reasoning was just that the money supply was still $21,000, against the $21,900 you stated earlier ($900 being created by the banks).

Practically, deposits are Liabilities to DMBanks, while Loans are Assets to. Before these are created, the banks have their Capital to work with. The interplay/management of these get them operating as banks.

mymadam:


Actually, it appears that they have. What I've noticed over a period of time is that they seldom regularly display the daily interest, as before. However, if you monitor your overall interest/balance, you'll notice a steady increment. Maybe, that's not a good idea but that's what it is

just2endowed:


Were you credited this week or last week?

My last credit was 30th of August. So what do you mean

mymadam:


Unfortunately I can only react to what transpires on my MMF account! Here's my update....

Realized interest was ONLY displayed for the following days in AUGUST 2022....

02, 08, 09, 16, 17, 23, 24, 25, 29, 30, 31.

However, the Realized Interest (total) kept on rising, even on days not displayed. Also, the total investment too is on an upward trend.

Ordinarily, one expects StanbicIBTC MMF to continue displaying the realized interest on a daily basis but unfortunately, it's all haphazard in nature.

ositadima1:


Most of the money in our economy is created by banks, in the form of bank deposits – the numbers that appear in your account. Banks create new money whenever they make loans. 97% of the money in the economy today exists as bank deposits, whilst just 3% is physical cash.

All the available physical Naira can not go round if everyone decides to hold their moneys in cash. Why?

just2endowed:
who noiticed that stanbic asset mgt has not paid interest on mmf for this month>

ositadima1:


Ok, Sir.

Let me say one last thing oh. Imagine Gtb bank informing you that your precious money in dat ur account has been halved cause part of it was lent to a debtor.

ositadima1:


Banks can't literally print money but they do create new money when they make loans.

In fact, the vast majority of money in the economy today comes from these loans created by banks.

However, when a loan is repaid, that money disappears from the economy.

To understand the process of money creation, let us create a hypothetical system of banks. We will focus on two banks in this system: Anderson Bank and Brentwood Bank. Assume that all banks are required to hold reserves equal to 10% of their customer deposits. When a bank's excess reserves equal zero, it is loaned up.

Anderson and Brentwood both operate in a financial system with a 10% reserve requirement. Each has $10,000 in deposits and no excess reserves, so each has $9,000 in loans outstanding, and $10,000 in deposit balances held by customers.

Suppose a customer now deposits $1,000 in Anderson Bank. Anderson will loan out the maximum amount (90%) and hold the required 10% as reserves. There are now $11,000 in deposits in Anderson with $9,900 in loans outstanding.

The debtor takes her $900 loan and deposits it in Brentwood bank. Brentwood's deposits now total $10,900. Thus, you can see that total deposits were $20,000 before the initial $1,000 deposit, and are now $21,900 after. Even though only $1,000 were added to the system, the amount of money in the system increased by $1,900. The $900 in checkable deposits is new money; Anderson created it when it issued the $900 loan.

I hope this matter can be put to rest, abeg o.

igbizen:

Please don’t argue with them again. Just refer them to debt and money creation - it’s a video on youtube.
With a particular deposit in a bank, they are allowed to give loans for example 3times (it may be more or less, but not 1:1) the cash they have as deposit. So if they have 100 naira and they are allowed to loan out 300 naira…what have they done? Create or print, they have just added another 200 naira from thin air.

Wapgod:
What stanbic ibtc branch is good for TB?
I just left one branch after much waiting and delay and I was told only 5% for 364 days is available which I declined.

SaintHilary:
Sorry for derailing All my big bosses
Assist your boys new side hustle make i top up my 200k tbills
I've got Luxury and Classy wrist watches for you and wiffy at affordable prices
Kindly Check signature for orders anywhere in Nigeria!

Regards and thanks for this thread!

yinkaoke:
Hello People
I thought they said there's an MPC meeting this week.

Also what is the position of this week PMA?

yinkaoke:
Hello People
I thought they said there's an MPC meeting this week.

Also what is the position of this week PMA?

VeeVeeMyLuv:
they are likely to raise the rates again just like America's federal reserve did yesterday, and Swiss National Bank (SNB) just did this morning.

yinkaoke:
Yeah 98% looking so, but what's ur thought with fx rate, is it possible it will drop given the high interest times we are witnessing?