That is a very good question, but I think the answer is no. Index funds invest in large companies, which are listed on the financial market. Banks are usually locally grounded and give loans to small businesses - which do not have access to the capital markets.
@@FinAndEcon True, but if more people recognize investing in index funds more safely in the future, this could lead to a decreasing in bank deposits right? This could be allarming for banks or there is somenthing that I’m missing here too? Thanks!
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I have a question: are the rising of index funds being used by public endangering the survivability of banking system?
That is a very good question, but I think the answer is no. Index funds invest in large companies, which are listed on the financial market. Banks are usually locally grounded and give loans to small businesses - which do not have access to the capital markets.
@@FinAndEcon True, but if more people recognize investing in index funds more safely in the future, this could lead to a decreasing in bank deposits right? This could be allarming for banks or there is somenthing that I’m missing here too?
Thanks!
Yes
How can one have 15min chart with you. I have a topic that's been causing me unrest for the past 2 years
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