{"id":337,"date":"2026-04-01T05:14:09","date_gmt":"2026-04-01T05:14:09","guid":{"rendered":"https:\/\/baarda.ch\/?p=337"},"modified":"2026-04-01T05:14:09","modified_gmt":"2026-04-01T05:14:09","slug":"hi-gem-my-goal-is-to-make-a-video-before-or-on-friday-for-youtube-with","status":"publish","type":"post","link":"https:\/\/baarda.ch\/?p=337","title":{"rendered":"Hi Gem. My goal is to make a video before or on friday for YouTube, with"},"content":{"rendered":"\n<p>as title &#171;How a bank creates money when you loan, Eurosystem explained&#187;<\/p>\n\n\n\n<p>I just want to run over everything with you to make sure I dont miss a<\/p>\n\n\n\n<p>detail. Lets use ING bank as an example.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Gemini zei<\/h2>\n\n\n\n<p>That is a fantastic topic for a YouTube video. It\u2019s one of those &#171;hidden in plain sight&#187; facts about the economy that usually blows people&#8217;s minds.<\/p>\n\n\n\n<p>To make sure your video is 100% accurate, let\u2019s break down the process using <strong>ING Bank<\/strong> as your example within the <strong>Eurosystem<\/strong> (the ECB and national central banks).<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">1. The &#171;Money Creation&#187; Moment<\/h2>\n\n\n\n<p>The most important thing to clarify is that ING does <strong>not<\/strong> simply take money from a saver&#8217;s account and hand it to a borrower.<\/p>\n\n\n\n<p>Instead, when a customer (let\u2019s call him Peter) signs a loan agreement for \u20ac20,000 to buy a car, the following happens simultaneously:<\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li><strong>Asset Side:<\/strong> ING records a new asset on its balance sheet\u2014Peter\u2019s <strong>loan agreement<\/strong> (the promise to pay back \u20ac20,000 + interest).<\/li>\n\n\n\n<li><strong>Liability Side:<\/strong> ING creates a new liability\u2014it types &#171;<strong>\u20ac20,000<\/strong>&#187; into Peter\u2019s checking account.<\/li>\n<\/ol>\n\n\n\n<p><strong>At this exact second, \u20ac20,000 of new money has been created.<\/strong> It didn&#8217;t exist before ING typed it into the computer.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">2. The Role of the Eurosystem (ECB)<\/h2>\n\n\n\n<p id=\"p-rc_296f81ed9f4db2a6-18\">While ING creates the digital &#171;commercial bank money,&#187; they can\u2019t do it without limits.<sup><\/sup> This is where the Eurosystem comes in:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Minimum Reserves:<\/strong> The ECB requires ING to hold a certain percentage (currently <strong>1%<\/strong>) of its customer deposits as &#171;central bank money&#187; (reserves) at the National Central Bank (e.g., De Nederlandsche Bank for ING).<\/li>\n\n\n\n<li><strong>Settlement:<\/strong> If Peter spends that \u20ac20,000 to buy a car from someone who uses <strong>ABN Amro<\/strong>, ING must transfer \u20ac20,000 of its <em>own<\/em> reserves at the central bank to ABN Amro\u2019s reserve account.<\/li>\n\n\n\n<li><strong>Liquidity:<\/strong> If ING runs low on these reserves because it\u2019s lending a lot, it must borrow them from other banks or from the ECB at the <strong>Refinancing Rate<\/strong> (this is how the ECB controls the money supply).<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">3. Debunking the &#171;Money Multiplier&#187; Myth<\/h2>\n\n\n\n<p>Many old textbooks teach the &#171;Money Multiplier&#187; (banks need a deposit <em>first<\/em> to lend). Modern central banks (like the ECB and Bank of England) have explicitly stated this is <strong>backwards<\/strong>.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Reality:<\/strong> Lending creates deposits.<\/li>\n\n\n\n<li><strong>The Constraint:<\/strong> Banks are limited not by the amount of deposits they have, but by <strong>Capital Requirements<\/strong> (having enough of their own skin in the game to cover losses) and the <strong>profitability\/risk<\/strong> of the loan.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">4. Key Details for your Video Script<\/h2>\n\n\n\n<p>To make your video stand out, mention these &#171;Pro&#187; details:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Concept<\/th><th>Explanation<\/th><\/tr><\/thead><tbody><tr><td><strong>Inside Money<\/strong><\/td><td>The money created by ING (90%+ of all money in the Eurozone).<\/td><\/tr><tr><td><strong>Outside Money<\/strong><\/td><td>The physical cash and reserves created by the ECB\/NCBs.<\/td><\/tr><tr><td><strong>Money Destruction<\/strong><\/td><td>When Peter pays back the loan, that money is literally <strong>deleted<\/strong> from the system. Only the interest remains as ING\u2019s profit.<\/td><\/tr><tr><td><strong>The &#171;Limit&#187;<\/strong><\/td><td>ING doesn&#8217;t have an infinite money printer because it has to remain &#171;Liquid&#187; (to pay out cash\/transfers) and &#171;Solvent&#187; (having enough capital).<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">5. Visual Storytelling Tips<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The Screen Capture:<\/strong> Show a mock-up of a bank app going from \u20ac0 to \u20ac20,000.<\/li>\n\n\n\n<li><strong>The Balance Sheet:<\/strong> Use a simple T-account. On the left (Assets), put the &#171;IOU&#187; from the borrower. On the right (Liabilities), put the &#171;New Deposit.&#187;<\/li>\n\n\n\n<li><strong>The Loop:<\/strong> Show the money disappearing when the loan is repaid. This is the part most people forget!<\/li>\n<\/ul>\n\n\n\n<p><strong>Does this align with how you were planning to structure the video, or should we dive deeper into the specific ECB regulations (like Basel III\/IV) that ING has to follow?<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>as title &#171;How a bank creates money when you loan, Eurosystem explained&#187; I just want to run over everything with you to make sure I dont miss a detail. Lets use ING bank as an example. Gemini zei That is a fantastic topic for a YouTube video. It\u2019s one of those &#171;hidden in plain sight&#187; [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-337","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/baarda.ch\/index.php?rest_route=\/wp\/v2\/posts\/337","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/baarda.ch\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/baarda.ch\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/baarda.ch\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/baarda.ch\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=337"}],"version-history":[{"count":1,"href":"https:\/\/baarda.ch\/index.php?rest_route=\/wp\/v2\/posts\/337\/revisions"}],"predecessor-version":[{"id":338,"href":"https:\/\/baarda.ch\/index.php?rest_route=\/wp\/v2\/posts\/337\/revisions\/338"}],"wp:attachment":[{"href":"https:\/\/baarda.ch\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/baarda.ch\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/baarda.ch\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}