Money creation thorough “investment” channels
| Assets | Liabilities and capital |
|---|---|
| Commercial Bank C (guaranteed wealth management products) | |
| Loan of the borrower G … + X dollars | Deposits of the investor F … + X dollars |
| ↓ | |
| Loan of the borrower G … + X dollars | Structure Deposits of the investor F … + X dollars |
| Specific assets … + X dollars | Deposits of the borrower E … + X dollars |
| Commercial Bank C (non-guaranteed wealth management products) | |
| Loan of the borrower G … + X dollars | Deposits of the investor F … + X dollars |
| ↓ | |
| Loan of the borrower G … + X dollars | |
| Deposits of the borrower E … + X dollars | |
| Assets | Liabilities and capital |
|---|---|
| Loan of the borrower G … + X dollars | Deposits of the investor F … + X dollars |
| ↓ | |
| Loan of the borrower G … + X dollars | Structure Deposits of the investor F … + X dollars |
| Specific assets … + X dollars | Deposits of the borrower E … + X dollars |
| Loan of the borrower G … + X dollars | Deposits of the investor F … + X dollars |
| ↓ | |
| Loan of the borrower G … + X dollars | |
| Deposits of the borrower E … + X dollars | |
Source(s): The table is created by authors