I’m explaining to someone how 100% banking could work, but this person just can’t believe that banks could exist making money off of
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Fees for demand deposits
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Arbitrage from lending out money acquired via CD’s
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lending out the banker’s (and his partners and stockholders) own capital.
I know that there were banks in Renaissanve Italy, and in Germany that operated on a strictly 100% reserve for demand deposits. I’ve been trying to find some sources but have been unsuccessful. Can anyone point me in the right direction?