@shutosh on Nostr: Just like any other business , banks need to have a balanced balance sheet .. Loans , ...

Just like any other business , banks need to have a balanced balance sheet ..

Loans , reserve at Fed , and T bills as assets on one side - and deposits as liabilities on the other side ..

As long as a bank has healthy balance sheet , it is a legit business .. besides ton of other regulatory requirements ..

Just the way , a car business creates cars and their inventory is treated like an asset , for a bank the product is the loan they issue .. just the way a car can be good or bad , a loan can also be a good loan and bad loan .. banks with good loans succeed ..

And the ones who lend to shitcoin companies and help create your yo coins fail :-) ..just a jab 😔