Remarkable, you've outed yourself as not understanding investments or the banking system, quite serious shortcomings for an economist, and yet you're still digging.
Makes one wonder what your domain expertise actually is. Do yourself a favour and ask someone who understands investments to explain.
LOL. You started your argument here by claiming that "cash ISAs" are actually invested in cash and now you can't answer a simple question because you don't want to admit you've made an idiot of yourself. Do carry on. Goodbye.
Virgin money, as a randomly chosen ISA provider for example, has £66bn liabilities of customer deposits but only £11bn assets of reserve deposits. So your answer is 18% correct.
The word cash in cash ISA refers to what the customer holds, which is a bank deposit, commonly referred to as ‘cash’. It has nothing to do with the assets the bank holds. But if the bank holds some cash, that will mainly be a call deposit the bank holds at the central bank
If a bank wants to extend credit to a corporate, it can.
That ‘loan’ creates a customer deposit. If the holder of that balance, which will initially be created in a current account, wishes the balance to be in a cash ISA account, the bank will debit his current
The bank earns interest on its reserve deposits, just as it earns interest on virtually all of its other assets (apart from the small amount of vault cash it holds)
Comments
You do know what UK base rate is don't you?
And 3m SOFR?
Makes one wonder what your domain expertise actually is. Do yourself a favour and ask someone who understands investments to explain.
You've properly beclowned yourself today, your ignorance is only surpassed by your arrogance.
Seriously, get someone you trust to explain this to you before you make a bigger arse of yourself.
You need to start by admitting (to yourself as a start) that you're well out of your depth and haven't the first notion what you're talking about.
I really have no idea what point you are trying to make here
If a bank wants to extend credit to a corporate, it can.
That ‘loan’ creates a customer deposit. If the holder of that balance, which will initially be created in a current account, wishes the balance to be in a cash ISA account, the bank will debit his current