Banks in India make about $20 billion a year -- half of their profits -- by paying customers ~2.5% (vs the repo rate of 5.25%) on the money in their savings accounts (~$800 billion).
Fascinating.
Chief Economist at Apollo: agents could cause a bank run by sweeping household cash into accounts paying 3-5% instead of the 0.1% national average, causing banks to lose a large share of their cheap deposits.
