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isn't all banking just check kiting?

3 Answers

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  • 7 years ago

    banks operate by depositors deposit and then they lend out some of that as loans,

    check kiting is like if you write a check from 1st account to 2nd account and right before it gets deposited

    you write a check using 2nd account so it seems like you have double the balance, which will be covered (hopefully) later by the deposit from the 1st account. this is borderline unethical/illegal.

    so isn't all form of deposit/loan banking just a larger form of check kiting?

  • Anonymous
    7 years ago

    The answer is no.

  • Anonymous
    7 years ago

    no

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