Why do you think banks care that much about depositors storing money in them?
The main way banks make money is by lending money, which also creates matching bank deposits. They do require some reserve-backed deposits for liquidity, capital adequacy ratios/reserve requirements, but not that much.
The main way banks make money is by lending money, which also creates matching bank deposits.
Yes. But this only works if the banking system, on average, holds onto the deposits it creates. This way of doing things would break down if everybody withdrew their deposits into cash every time they got a loan and everybody only transacted in cash. The same thing would happen if borrowers immediately withdrew their deposits into CBCoin.
The main way banks make money is by lending money, which also creates matching bank deposits. They do require some reserve-backed deposits for liquidity, capital adequacy ratios/reserve requirements, but not that much.
See this publication from England's central bank: http://www.bankofengland.co.uk/publications/Documents/quarte...