Sorry this is the wrong customer deposits are not loaned out, instead banks create money digitally, by creating an asset and crediting it to the customers account. (see Money Creation & Richard Murphy excellent youtube on this: How banks creates money out of thin air), this is why the crypto bros say that modern banking is a ponzi scheme (it isn’t, it’s just how the money supply grows)
Liquidity (lcr) is managed via BASEl III (BASEL III)
I think you are preaching to the choir a little here, as I move through my 50s I am finding ‘boring’ banks like Santander, RBS and Nationwide to offer a much less cluttered experience, although all of them need to ‘clicks’ to see your transactions whereas Monzo surfaces them on the opening screen
The money creation point is correct, and not what I was disputing as both mechanisms operate simultaneously.
Banks do create money through lendin, but customer deposits also form a key part of their funding and liquidity management.
Under Basel III, retail deposits are explicitly treated as stable funding within the LCR framework which wouldn’t be the case if they were irrelevant to how banks fund themselves.
So it’s not either / or lending creates deposits, but deposits also support the overall funding model.
I do find Revolut less gimmicky than Monzo. Has near everything I want from an app. I’m confused why standing orders and direct debits need to be 8am and 9:30am respectively.
I’d be with Starling if they let back ex customers as they are basic but solid.
I have Lloyds which is mediocre ok, has everything I need just bugs me notifications aren’t instant or vibrate. Direct debit notifications start of month just say x amount of debits paid today, I want to know which ones without having to wait for the slow app to load.
HSBC is good but the app again too much on the home page. Everything else works as it should.
Barclays again, too much on the home page, which I can deal but notifications without vibrate, and direct debit notifications just show amount and account paid from, which is no major but would be better to see merchant name and amount to be sure it was accurate.
They could do something better in this area but my guess is if they did bring a new product out it would be similar to other banks i.e regular saver capped at X amount.
IASP’s