One of the reasons we find it difficult to understand the banking system and credit creation, is that we leave school without any money, and we go and get a job working as an apprentice to a plumber
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During the long phase of commodity money, because there is no defined commodity behind the reserve currency. During the long phase of commodity money, the exchange rate would depend on the amount of gold, silver or copper contained in the coins of each country.

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In 1980, global bank assets were worth 20 times the then global economy

So, you need money, and the road has brought you to the bank. You name your achievements: an expensive car, an apartment, a cottage. The bank employees smile sweetly, but you get a refusal. No one explains the reasons, but they are there. More precisely, this is always one reason, let's try to figure it out.

The bank is created to make a profit. Other organizations are engaged in charity work.

The bank is interested in issuing loans, since this is its main earnings (we do not consider currency activity in this article). The bank has few assets of its own, it attracts borrowed funds and is itself a large borrower: depositors, the Central Bank, other banks are its creditors.

The bank operates mainly with highly liquid assets - money. By issuing a loan, the bank is obliged to make a profit, which is formed from the interest rates on the loan.

And I've said before, Mr Deputy Speaker, no return to boom and bust.

Net bank lending must forever increase.

We are paying interest on every single pound.

It is a fundamentally important service that everybody needs.

so money can much more easily come in and out of their economy. The idea is that this will encourage investment to come in from richer parts of the world, and that all of their problems will be solved from this investment.

Scoring is a system by which banks and other credit organizations evaluate the creditworthiness of the borrower and, accordingly, decide whether to issue a loan. The rating is calculated based on your credit history and shows how good a customer you are – what loans and when you took out and whether you paid interest on time.

If you have not had loans before– then your credit history is zero, which may cause rejection. The bank does not know anything about you and cannot understand whether you will be a good customer.

Moreover, refusals worsen the credit history – that is, you need to send an application only to those banks where the probability of loan approval is higher.