How does a Commercial Bank work? | A brief overview.

Commercial banks can create money out of thin air when they loan out to people, but how does a commercial bank actually work? In this video we explore what's going on behind the scenes at your bank and discuss how the supply of money changes in the modern economy.

If you're new to this channel then all you need to know is that we create videos to help you understand the world around you.

Thanks for watching; have a great day!

[khanyamatta]

Hey y'all South African here🇿🇦 just want to clarify we have a comm. bank literally called First National Bank, it's not an example anymore 😂

[trevorcorreia]

In the example that you provided, when the first national bank gets £100 and they give £90 to the second national bank, does the first national bank only have £10 on them?

[MacksCurley]

The banks creates new currency out of thin air 3:22. So why do they need new deposits to create more loans 4:26.