Wizards are specifically described as not engaging fractional-reserve banking, which implies that any real estate is bought without debt with saved-up funds; hence, we would also expect to see savings reflected in wizard vaults and the Davises in particular unless we think they already bought a property (in which case the 300 galleons would then become a massive underestimate, yes).
No fractional-reserve banking does not imply this—there could be lenders (whether goblins or wizards) with a large supply of their own gold which they use to make loans. Or landowners could sell property with a “rent to own” payment plan. Fractional-reserve banking is only necessary if you want to lend someone else’s gold.
I was not using implies in the logical deduction sense. Not having fractional-reserve banking eliminates a massive source of capital which could be used for mortgage lending and ceteris paribus will reduce such lending, does it not?
Wizards are specifically described as not engaging fractional-reserve banking, which implies that any real estate is bought without debt with saved-up funds; hence, we would also expect to see savings reflected in wizard vaults and the Davises in particular unless we think they already bought a property (in which case the 300 galleons would then become a massive underestimate, yes).
No fractional-reserve banking does not imply this—there could be lenders (whether goblins or wizards) with a large supply of their own gold which they use to make loans. Or landowners could sell property with a “rent to own” payment plan. Fractional-reserve banking is only necessary if you want to lend someone else’s gold.
I was not using implies in the logical deduction sense. Not having fractional-reserve banking eliminates a massive source of capital which could be used for mortgage lending and ceteris paribus will reduce such lending, does it not?