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CASS Anatomy: Difference between revisions
→In a {{nutshell}} then?
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**You are exposed to the credit risk of bank, but as we all now know banks are carefully regulated, capitalised and designed to be appropriate places to look after your money. | **You are exposed to the credit risk of bank, but as we all now know banks are carefully regulated, capitalised and designed to be appropriate places to look after your money. | ||
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====In a {{nutshell}} then?==== | ====In a {{nutshell}} then?==== | ||
''Anyone'' can borrow some money off you; only someone special can hold your money for you. Everyone else has to look after your money by giving it to a bank to hold for you in your name. In that case there is no debtor/creditor relationship with the payee as long as the payee promptly transfers the cash on to a bank with whom you will have a debtor/creditor relationship. Note this is also title transfer (you can’t {{isdaprov|not}} title transfer cash), but within a prescribed period, the transfer goes to a third party bank. (if the intermediary were to go insolvent in the mean time it's tough luck). | ''Anyone'' can borrow some money off you; only someone special can hold your money for you. Everyone else has to look after your money by giving it to a bank to hold for you in your name. In that case there is no debtor/creditor relationship with the payee as long as the payee promptly transfers the cash on to a bank with whom you will have a debtor/creditor relationship. Note this is also title transfer (you can’t {{isdaprov|not}} title transfer cash), but within a prescribed period, the transfer goes to a third party bank. (if the intermediary were to go insolvent in the mean time it's tough luck). | ||
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===Banks=== | ===Banks=== | ||