Time Deposits, Dimensions, and Fraud


We stipulate, arguendo, that fractional-reserve-demand deposit banking is per se fraudulent. We ask whether or not time deposit banking can also be illicit, and answer in the positive, if there is a mismatch between the time dimensions of deposits and loans. To wit, if an intermediary borrows short and lends long.

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Correspondence to Walter E. Block.

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Barnett, W., Block, W.E. Time Deposits, Dimensions, and Fraud. J Bus Ethics 88, 711 (2009). https://doi.org/10.1007/s10551-008-9976-9

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Key words

  • time deposits
  • dimensions
  • libertarianism
  • private property rights
  • fraud