Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments February 19, 2022 erstellt
Beschreibung:
Underpinning the post-crisis consensus on money creation (the “bank loans create deposits” thesis) is Werner’s explanatory account, according to which banks are able to do this by virtue of their being exempt from the law prohibiting firms from receiving client funds and holding them “in deposit”, known in the UK as the ‘client money rules’ and detailed in the FCA’s Client Asset Sourcebook (CASS). Though in my view partial and at times equivocal, Werner’s explanation contains a plethora of valuable insights which, as I show, can be combined with other regulations to fully explain – or so I claim – not only credit institutions’ capacity to create sight deposits in excess of the funds received from depositors (as well as the willingness of the latter to accept such tender), but also the incapacity of e-money institutions (EMIs) to create e-money in excess of the funds received from e-money holders, as well as the incapacity of central securities depositories (CSDs) to create balances in securities accounts in excess of the securities received from investors