The banks themselves are not backed by assets..I posted "are Australian Banks into derivatives? SS member Nukz posted graphs of the big 4 Australian banks..They showed that all our banks are professional gamblers and are exposed to derivatives in a huge way. They are only solvent while this section holds up. Regards Errol 43
I like how banks don't view pm's as as assets, it shows how real money is like garlic to a vampire and how farked things have gotten. It shows how much things will change when their house of paper burns down.
I'd say that already happens quite a lot with parents loaning fiat to their kids to make up the deposit on a house. Nobody admits to the bank that their parents came up with the deposit and that the kids (the borrowers) essentially have no equity themselves.
I got a loan against my primary residence. When they asked about "assets", I gave them a list of my liabilities (car, furniture, house ...), and never mentioned the bullion. I imagine if I went bankrupt, and had the bullion listed as collateral the bank would want it.