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NE Iowa | I'm not a banker, so don't know any of their rules/regulations. But don't they have to maintain a level of cash inside their 4 walls that is some % of their total deposits? If I foolishly assume all patrons of some bank (that is running right at this minimum cash on hand percentage) march down to cash their checks at the same time, could there be a problem with banks running out of money? This thought was spawned from my wife asking the question of where does this money come from - not from a tax/fiscal/financial standpoint, but from a 'greenbacks in my pocket' standpoint? I have no idea how many adults would be represented by 1 of our local banks (our town's population is ~1600) - maybe 1000? The 1600 doesn't include the rural population, but there are 2 other smaller banks in town and many larger banks 25 miles away. If all 1000 people line up to cash their $1200 checks, the bank would need to cough up $1.2M that they wouldn't normally have to cough up in a short period of time. Could this deal cause a run on some banks? | |
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