All money is debt.
What value do banks add in this day and age? They arent loaning all the near free money the central bank is offering to sustain commerce, so my feeling they will be cut out at some point soon.
What value do banks add in this day and age? They arent loaning all the near free money the central bank is offering to sustain commerce, so my feeling they will be cut out at some point soon.
No, most good money is ownership of an asset, like possibly Gold, for example. For Euros, it's ownership of high-grade assets.
In the US, it's ownership of TBonds. Now, yes, TBonds are a form of debt, so there can't be a USD without the US making loans, but, the dollar itself is not debt, it's ownership of debt, which are different things.
Banks #1 job is managing risk. They do the work of determining who is credit worthy, on what terms and not, making the loans and taking on the risk.
That is what finance is.
So, what happens if a bank goes bankrupt?