in modern banks money is just a number in a database, right? What stops the bank owners from just adding an amount to a saldo of an account?

Question

in modern banks money is just a number in a database, right? What stops the bank owners from just adding an amount to a saldo of an account?

In: Technology

Answer 1

It is happening constantly. You just have to be big enough bank, then you can create money from thin air because of leverage. This is why we have inflation.