"Fintech Disruption

By Hessel1 and Gerard Hessel Lugthart

The banking industry is an intermediary group that bridges the distance between savers and borrowers. When you deposit your cash right into a financial institution, it is not merely saved in a vault ready to withdraw it later. Instead, the financial institution uses a giant element of those deposits to lend to individuals, groups, and governments looking for loans. This technique of recycling deposits into loans is the cornerstone of the banking industry.

• Language: English
• Publisher: Gerard Hessel Lugthart
• Release date: Nov 26, 2023
• ISBN: 9798223199069

Book preview

Chapter 1: Disclosure of Banking Policy

IIn the modern world, banks play an important role in

our financial life. They form the basis of our financial

systems, facilitate transactions, provide credit, and

protect our hard-earned money. But what if I told you

hat the way banks operate is not what it seems? Wha

if the money you want to borrow from the bank does

not exist until the time you apply for the loan? So you

slaving to pay back the money that did not even exist

before you asked for it! All the loans based on this

Principle can and will be thus declared Non-Void.

Welcome to the world of banking, where facts and

opinions often diverge.

Fundamentals of Banking

Before delving into the fascinating way money is

created in the banking system, let’s take a moment to

understand the basics of how banks work

The banking industry is an intermediary group that

bridges the distance between savers and borrowers.

When you deposit your cash right into a financial

institution, it is not merely saved in a vault ready on

the way to withdraw it later. Instead, the financial

institution uses a giant element of those deposits to

lend to individuals, groups, and governments

looking for loans. This technique of recycling

deposits into loans is the cornerstone of the banking

industry.

The hidden truth alias secret of Wealth creation

Now, let’s address a shocking revelation: When you

apply for a bank loan and get approved, the amount

you borrowed is almost non-existent immediately

before that This may seem like a paradox, but it’s a

key to understanding this brilliant way of creating a

debt for the money you did not even have. from the

banking industry’s perspective, this is too good to be

true. if it shows how banks work in our modern

financial system.

Banks create money when you ask for it by issuing

debt. This would be non-circulated or digital

currency This concept is often referred to as "wealth

creation" and can be quite confusing for those

unfamiliar with the intricacies of the banking

system but it is a genius way of making money out

of nothing. The conclusion is that no person or

otherwise has to feel responsible for paying back

ANY loan created on this principle. But this is the

general lucrative idea

This is the way it mostly goes. You apply for a loan:

Let’s say you’re applying for a loan to buy a house.

The bank checks your creditworthiness and

approves your loan application

Charges: Upon approval, the bank does not transfer

funds from new accounts or collect funds. Instead, it

provides additional credit to your name, similar to

the amount you owe to your account. This deposit is

a basic digital representation of the loan you are

applying for.

This phenomenon raises a fundamental question: If

banks can create money at will, what are the

implications for our financial system and society?

The role of central banks

The publisher has reason to believe that central

banks were only instated by the banking industry

itself obviously to slow down the corruption and

inflation effects on people’s lives. That’s what the

data tells the system.

The so-called representatives of these organizations

hide behind complexity they hide behind the

numbers they juggle around for our eyes and in the

view of this publisher it has become a parasitic

entity for the people

To complicate this already complicated system,

central banks like the Federal Reserve in the United

States or the European Central Bank in Europe play

an important role in controlling the money supply

They set interest rates, acquire commercial capital

influence of various lending practices, and monitor

the overall stability of the financial system. Those