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Technology Stocks : Semi Equipment Analysis
SOXX 283.56-1.7%4:00 PM EST
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To: FJB who wrote (71589)2/12/2016 10:04:07 PM
From: Gottfried  Read Replies (2) of 95427
 
I think the bank pays for not using the money for lending: they ask somebody else [the Fed?] to hold it for them. Consumers would not pay for depositing money into a savings account. Consumers only pay interest when taking out a loan. But the interest on that loan would be higher because the bank must recover the money they paid to another institution to hold the bank's unused [not lent out] money.

Perhaps there will be other articles explaining it better, now that many ask these questions.
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