There used to be banks that only charged a fee and did not invest the money. But those banks have either merged with bigger banks that care about their shareholders more, or have gone out of business to banks that are fractional reserve banking in nature.
The problem is, bank solvency is extremely volatile with fractional banking, and if it wasn’t for FDIC “guarantees” and “too big to fail” status, there would be more failures in the system every 5-8 years every time we have a 20%+ correction in stock market prices.
There used to be banks that only charged a fee and did not invest the money. But those banks have either merged with bigger banks that care about their shareholders more, or have gone out of business to banks that are fractional reserve banking in nature.
The problem is, bank solvency is extremely volatile with fractional banking, and if it wasn’t for FDIC “guarantees” and “too big to fail” status, there would be more failures in the system every 5-8 years every time we have a 20%+ correction in stock market prices.