Everyone present understood the concept of "banknotes" as certificates issued by banks for customers making large deposits.
In this era, however, depositing money in a large bank not only yielded no interest, but actually incurred storage fees. Consequently, most banks functioned merely as supplementary structures for large merchant associations. Banks like those of the Southeast Chamber of Commerce established transaction hubs at various business locations, facilitating trade for their members.
The Great Xia Emperor glanced at Dong Xingshu, who then spoke up. "So, this 'Central Bank' is essentially a state-run large-scale bank?"
Chapter 445