In one case that my partner and I worked many years ago at a regional bank, this premise was illustrated when an elderly depositor called the bank to report an apparent accounting error of about twenty dollars in interest in her IRS 1099 for her two Certificates of Deposit.
They also put physical and psychological distance between the depositor and his bank, which is counter to the idea of a community bank.
Conversely, if you are a wealthy Russian depositor in a Cyprus bank, this is a pretty raw deal.
Early Islamic banks tried operating on these bases, with risks and losses shared among bank, depositor and borrower alike.
Presently, the money becomes the property of the bank and the depositor receives a demand note.
FORBES: The Unintended Consequences Of The Greatest Economic Experiment
Under that decision, money deposited into a bank is the property of the bank and the depositor holds a demand note in return.
The coming weeks, leading to the second Greek election, will see the interplay of opinion polls, depositor behaviour and the European Central Bank's bi-weekly decisions on the Bank of Greece's lending capacity.
We have had nearly five years when governments were nervous of suggesting that anybody could lose anything they lent to a bank, either as a depositor or an investor.
Change banking laws so that money deposited in a bank remains the property of the depositor just as it would if he deposited the money in a warehouse.
FORBES: The Unintended Consequences Of The Greatest Economic Experiment
They have even helped with bank strategy by allowing clients to concentrate on growing their depositor and borrower base.
If a wire arrived at a bank, properly coded and sent, anything they did could be a disaster to the depositor.
One way of stopping that, says my market interlocutor, is if the Eurozone authorities would issue pan-European depositor insurance, effectively saying to everybody, everywhere in the zone, that the other members would make good bank deposits in the event of exit, or capital controls etc.
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