Euro Pacific Bank Limited

Does Euro Pacific Bank make any loans, extend leverage, or use client assets in any way?

Euro Pacific Bank is unique in the banking world as it is a transactional only bank. This means that the bank keeps a deposit ratio of 100%. Contrast this to most banks worldwide, where they operate on a fractional reserve system, typically lending out 90%+ of client deposits. What this means for depositors is that the bank is not susceptible to a ‘bank run’. If all of the bank’s depositors request their capital withdrawn, this request can be fulfilled in full without compromising the solvency of the bank. Again, contrasting this with the majority of banks globally, if even a small ratio of depositors request withdrawals (10%+) the bank is at risk of insolvency and the loss of client deposits, at the very least a banking holiday.