Demand Deposits (7) - Bank Records

The warehouse owner will keep an inventory of everything that is stored in his warehouse. He records the identity and contact details of the owner of each item. He can even transfer the ownership to another person, if instructed by to do so by the owner. However, this recording system will be separate from his assets register.

Banks should really be doing the same thing with demand deposits. They should be keeping an inventory of all the money being stored and the identity of the owners. This should be separate from their financial accounts. The money stored should not be able to creep onto the bank's asset register.