You don’t have to study economics to get into banking. Many bankers have degrees in philosophy, geography, mathematics, civil engineering, law, or history.
Bank managers don’t care that their employees have studied Old French poetry or Kant’s Kritik der reinen Vernunft. To employers, a university degree indicates perseverance and an ability to learn new things.
Do you think banking is too hard for you? Are you convinced that all bankers are crooks? Would you like to follow the financial news, but you always get stuck on terms like derivatives, cryptocurrency or quantitative easing?
However, there exists a much better description for banks. In Dutch, the formal description of banks is “geldscheppende financiële instellingen”, which literally means “money-creating financial institutions”:
As far as I can tell, Dutch is the only European language in which banks are described as active money creators1. All other languages use ‘monetary intermediation’.
Maybe everybody should take a cue from Dutch and start saying ‘money creating institutions’ from now on, so we don’t have this debate a hundred years from now 😛
I explain how banks create money in Bankers are people, too. After you’ve read my book, you’ll know more about banking than many PhD economists!
Update 20 October 2019: the link to the Bank of England paper was broken. It’s fixed now, thanks to Anna for notifying me!