Back dating bank deposits
Personally the majority of my payments are done electronically for safety and convenience purposes – your theory would therefore suggest this is not providing liquidity to the businesses I deal with (where I believe cashflow is king for many accountants).
These payments hit the vendors bank accounts (once they press a few simple buttons) within the working day providing liquidity for the vendors in the form of bank deposits – which are then likely to be transferred to suppliers electronically – providing liquidity to all.
So what is more liquid – funds held in a central bank or a government bond?
I appreciate that this is not purely mainstream, but I know how these things operate in every bank I have ever worked in. You may (OTOH) argue that, in the event of a likely bank failure to deliver due to insolvency, the government is likely to step in – the (either implicit or explicit) “printing press” contingency.
T Bank offers multiple banking products for their customers' personal banking needs.
Products include checking and savings accounts, home and personal loans, credit cards, mobile and online banking, student banking and more.
, though, the bank may not deliver the funds – so bank accounts are clearly less liquid than cash.
That situation is only likely to occur when the bank itself cannot deliver on the demand for cash – i.e.