6 Pages Posted: 22 Jul 2011
Date Written: July 19, 2011
We stipulate, arguendo, that fractional-reserve-demand deposit banking is per se fraudulent. We ask whether or not time deposit banking can also be illicit, and answer in the positive, if there is a mismatch between the time dimensions of deposits and loans. To wit, if an intermediary borrows short and lends long.
Suggested Citation: Suggested Citation
Block, Walter E. and Barnett, William, Time Deposits, Dimensions and Fraud (July 19, 2011). Journal of Business Ethics, Vol. 88, 2009. Available at SSRN: https://ssrn.com/abstract=1889437