# Funding of banks



## dewdrop (5 Oct 2008)

Once lending institutions became reliant on wholesale funding of their mortgage lending was it not inevitable that the day would come  for many reasons that these providers would not renew their funding and such facitities could not be obtained elsewhere. this could be triggered off by global upheavel or fears of the solvency of the particular bank. is this making the current problems too simple. I grew up in a bank where all deposits were from ordinary clients and lendings all by way of overdraft or what the letter of sanction said...at the pleasure of the bank..I find it difficult to understand how you could enter into long term loans without knowing your funding was secure.


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## z109 (5 Oct 2008)

dewdrop said:


> I grew up in a bank


You were a foundling at a bank 

I agree with you sentiments, though. This FIRE economy thing is way over-rated.


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