Labour pays homage to Iron Lady

[Beskar]

Again, you are being out of touch with how business works. And no, we're really not talking about "just now". If you want to ban debt for banks, that impacts the future as well. The current situation does demand limitations on how far banks should be allowed to go into debt. But again, you must remember that banks don't operate on the same business model as most businesses. When they have lots of money(ie deposits), they lose money. When they have debt(ie- loans), they increase their revenue, assuming its paid back. That is why banks have so much "debt", they aren't meant to have a huge amount of cash on hand. Because of the prior assumption, there should be limits on just how far they go into debt, but barring them from debt causes havoc with the entire model and will likely run a large number of banks out of business entirely, with those surviving being crippled both in their ability to finance average folks and aspiring entrepreneurs, and their own fiscal ability to expand business and pay their employees a good wage.

I will accept this argument I am slightly out of touch, because I have to say, how do banks lose money when they have lots of money?

Obviously, working on interest of the deposit and the interest of the repayment would correct the balance out? Also, I was meaning surplus money as being its own money, not actually deposits.

Yes, there is possibly the chance that deposits could revert just to keeping that money in storage (after all, who wants to carry all their money around in their house where they could lose it for good?) however, I don't see how banks could actually lose money, unless no one invested and the loans were not repaid and they weren't secured against property or anything like that.