Banks need to wake up

GettingHopeful

Isn't it the case that for every pound in credit the banks can lend £6.00 - because of the system in which we use cards and cheques not money, that they can safely lend 6 times what is on deposit? They cannot not make money unless there is a run on the bank and everyone wants cash?

So even a basic account with £10 in it will pay its way.

And if they have 100,000 accounts with £10 in them they have £1m deposited which means they have £6m to loan out at interest.

Holes_in_my_pocket

Lets hope Mr Llyods and Mr Natwest etc may get to read this

sniggings

its strange that some banks allow BR and some don't cos when it comes to making money the banks are not shy so maybe BRs dont allow them to do this? I know when I wasn't BR they made loads out of me with bank charges but now with no overdraft I can sort of see how it might cost them to run my account but on the other hand can not understand why a few like barclays allow BR accounts if we dont make them money as I don't see barclays as charitable bank but again would think that phone and online banking would be the cheapest way to run an account but yet barclays are said to take these two things away from BRs?

k2nga

Ldavies i know you are not having a go i just like to point out what its like.

I will back up what was said on here and say like the rest of you they certainly had plenty out of me over the years although i guess there loss with me may well have wiped that out.