Where do banks obtain money that they lend to borrowers?

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2026-05-11 06:05

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Banks obtain money to lend to borrowers primarily from deposits made by customers, such as savings and checking accounts. They also access funds through interbank loans, issuing bonds, or borrowing from the central bank. Additionally, banks can use their own capital and retained earnings to finance loans. This system allows them to manage liquidity while supporting lending activities.

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