Comments on: Allied Irish Banks investigates itself http://www.publicinquiry.eu/2005/08/25/55/ Examining corruption in Ireland Wed, 08 Feb 2012 21:13:12 +0000 hourly 1 http://wordpress.org/?v=3.3 By: fungus_fitzjuggler http://www.publicinquiry.eu/2005/08/25/55/comment-page-1/#comment-38 fungus_fitzjuggler Sun, 28 Aug 2005 12:59:56 +0000 http://www.irishcorruption.com/?p=55#comment-38 Banks are only allowed to conduct business if they have a licence. The Central Bank (Department of Finance) control this. If you have a licence you may lend money you do not have, thereby creating money. Different definitions of M0, M1, M2, M3 etc. By lending more than you have, you "earn" more interest than you pay for the money, less bad debts and staff costs. The more capital they have, the more they may lend. Easy when there is inflation...... But every bank must be honest. Really. And. Of course. They are. The shareholders are. It is just the staff who aren't........And the auditors aren't very good....... Banks are only allowed to conduct business if they have a licence. The Central Bank (Department of Finance) control this. If you have a licence you may lend money you do not have, thereby creating money. Different definitions of M0, M1, M2, M3 etc. By lending more than you have, you “earn” more interest than you pay for the money, less bad debts and staff costs. The more capital they have, the more they may lend. Easy when there is inflation……

But every bank must be honest. Really. And. Of course. They are. The shareholders are.

It is just the staff who aren’t……..And the auditors aren’t very good…….

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