Open Banking and the current Spaghetti Junction –

Banks have always created money in this fairly simple way, which depends on Reserve ratio requirements imposed by the regulatory bodies in each region. In addition, we have always had non-depository lending institutions. And last but least, we have been extremely innovative in increasing the leverage in the economy through “exotic and complex” off-balance sheet financial structures, like the derivatives that brought upon us the 2008 crisis.

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