Back dating bank deposits
there are more demands for withdrawals than the individual bank has access to cash to meet those demands.Really, then, the total pool of liquidity represented by any bank is not the total amount on deposit with the bank, but the (much smaller) amount they have in ready cash or other sources of funds to meet calls for withdrawals.T Bank offers multiple banking products for their customers' personal banking needs.Products include checking and savings accounts, home and personal loans, credit cards, mobile and online banking, student banking and more.
This theory is indeed curious, especially given your long history of working in bank treasury functions.
So what is more liquid – funds held in a central bank or a government bond?
The answer really is heavily weighted towards to former – as it takes less time to negotiated the settlement of the funds via electronic payment systems than it does to price and settle a government bond (which is “generally” traded as trade date plus a few days).
This is a contractual question between me and the bank.
Most of the time the bank will honour the demand to pay the funds, so under most circumstances the funds in my bank account are a close cash substitute and can therefore be regarded as money, and I agree with Mark above on that.