How Banks Work!

Have you ever noticed the vault when you go to the bank? A vault is a room, usually at the back of a bank, with thick walls, a heavy door, and a big lock. All banks have one.

- Sheila Bair

When I was a kid, I thought the vault at my bank was where the bank kept all the money that people put into their accounts. I thought it was piled high with crisp green bills and shiny coins. Then one day I was at the bank with my dad, and the vault door was open just a crack. While my dad talked to a friend, I sneaked over to the vault to peek inside. Do you know what I saw?

There was no money at all inside, not even a penny. Just rows and rows of little metal drawers.

“There’s no money in the bank! There’s no money in the bank!” I shouted as I ran back to my dad.

“There’s no money in the bank!” I shouted.

Everyone in the bank stopped talking and looked at me. The bank manager ran out of his office, red-faced and excited.

“Why are you telling everyone that the bank has no money?” he asked.

“Somebody must have stolen it,” I said. “There isn’t a single coin in the vault.”