{"id":339,"date":"2026-04-01T05:14:30","date_gmt":"2026-04-01T05:14:30","guid":{"rendered":"https:\/\/baarda.ch\/?p=339"},"modified":"2026-04-01T05:14:30","modified_gmt":"2026-04-01T05:14:30","slug":"also-this-from-all-the-savings-that-ing-has-of-customers-only-1-at-any-given-moment-can-be-paid-out","status":"publish","type":"post","link":"https:\/\/baarda.ch\/?p=339","title":{"rendered":"Also this: from all the savings that ING has of customers, only 1% at any given moment can be paid out?"},"content":{"rendered":"\n

Gemini zei<\/h2>\n\n\n\n

This is a common point of confusion that will make for a great «myth-busting» segment in your video.<\/p>\n\n\n\n

The short answer: No, that’s not quite how it works.<\/strong> There is a big difference between Required Reserves<\/strong> (the 1% rule) and Liquidity<\/strong> (the ability to pay out cash). Here is the breakdown for your script to ensure you’re giving your viewers the full picture.<\/p>\n\n\n\n

1. The 1% Rule (Minimum Reserves)<\/h3>\n\n\n\n

The «1%» you are referring to is the Minimum Reserve Requirement<\/strong> set by the ECB.<\/sup><\/p>\n\n\n\n

    \n
  • What it is:<\/strong> ING must keep 1% of its «reserve base» (mostly customer deposits) as digital money in an account at the central bank.<\/li>\n\n\n\n
  • The Misconception:<\/strong> People often think this means ING only has<\/em> 1% of the money.<\/li>\n\n\n\n
  • The Reality:<\/strong> This is a monetary policy tool. It\u2019s a «speed limit» on how much money banks can create, but it doesn’t represent the total amount of cash ING has available for you to withdraw.<\/li>\n<\/ul>\n\n\n\n

    2. The 100% Rule (Liquidity Coverage Ratio – LCR)<\/h3>\n\n\n\n

    Since the 2008 financial crisis, banks like ING are actually governed by much stricter rules called Basel III<\/strong>. The most important one for your question is the Liquidity Coverage Ratio (LCR)<\/strong>.<\/p>\n\n\n\n

      \n
    • The Rule:<\/strong> A bank must hold enough «High-Quality Liquid Assets» (cash and easy-to-sell bonds) to survive a 30-day stress scenario<\/strong> (a «bank run»).<\/li>\n\n\n\n
    • ING’s Reality:<\/strong> ING usually keeps an LCR well above 100%<\/strong>. This means if a huge chunk of their customers suddenly wanted their money out within a month, ING has enough «liquid» assets to cover that outflow.<\/li>\n<\/ul>\n\n\n\n

      3. «Digital» vs. «Physical» Cash<\/h3>\n\n\n\n

      Here is the «Aha!» moment for your video:<\/p>\n\n\n\n

        \n
      • Most money in the Eurozone is just digits on a screen<\/strong>.<\/li>\n\n\n\n
      • If every<\/em> ING customer went to an ATM at 2:00 PM today to withdraw their entire balance in physical paper bills<\/strong>, the bank would run out of paper. Not because they don’t have the «money,» but because they don’t keep billions in physical paper sitting in vaults (it\u2019s a security risk and earns no interest).<\/li>\n\n\n\n
      • The Process:<\/strong> If there\u2019s a surge in demand for cash, ING simply «buys» more physical banknotes from the Central Bank using their digital reserves.<\/li>\n<\/ul>\n\n\n\n
        \n\n\n\n

        Summary for your YouTube Script:<\/h3>\n\n\n\n
        \n

        «You might have heard that banks only keep 1% of your money. That 1% is actually a technical requirement by the ECB.<\/sup> In reality, thanks to regulations like the LCR, ING is required to keep enough liquid assets to pay out a massive wave of withdrawals for at least 30 days. They have the value; they just don’t keep it all in paper notes under the counter!»<\/p>\n<\/blockquote>\n\n\n\n

        Comparison Table for your Video<\/h3>\n\n\n\n
        Feature<\/th>Minimum Reserve (The 1%)<\/th>Liquidity Ratio (LCR)<\/th><\/tr><\/thead>
        Who sets it?<\/strong><\/td>European Central Bank (ECB)<\/td>Basel Committee \/ EU Law<\/td><\/tr>
        Purpose<\/strong><\/td>Control the money supply<\/td>Prevent bank runs\/failures<\/td><\/tr>
        What is it?<\/strong><\/td>Digital cash at the Central Bank<\/td>Cash + Government Bonds<\/td><\/tr>
        Impact on you<\/strong><\/td>Indirectly affects interest rates<\/td>Ensures your money is safe<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

        Pro-tip for Friday:<\/strong> Mention that when you withdraw cash, you are just exchanging «Commercial Bank Money» (ING’s digital promise) for «Central Bank Money» (physical Euro notes).<\/p>\n\n\n\n

        Does this clear up the «1% myth» for your script?<\/p>\n","protected":false},"excerpt":{"rendered":"

        Gemini zei This is a common point of confusion that will make for a great «myth-busting» segment in your video. The short answer: No, that’s not quite how it works. There is a big difference between Required Reserves (the 1% rule) and Liquidity (the ability to pay out cash). Here is the breakdown for your […]<\/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-339","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/baarda.ch\/index.php?rest_route=\/wp\/v2\/posts\/339","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=339"}],"version-history":[{"count":1,"href":"https:\/\/baarda.ch\/index.php?rest_route=\/wp\/v2\/posts\/339\/revisions"}],"predecessor-version":[{"id":340,"href":"https:\/\/baarda.ch\/index.php?rest_route=\/wp\/v2\/posts\/339\/revisions\/340"}],"wp:attachment":[{"href":"https:\/\/baarda.ch\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=339"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/baarda.ch\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=339"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/baarda.ch\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=339"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}