Narrow banking

Alright kiddo, imagine you have a piggy bank where you keep all your money. Sometimes you want to take some of that money out to buy toys, candy or anything else you like. Now, what if you had two piggy banks, and one of them was only for your savings, and the other one was for your spending money?

That's kind of like what narrow banking is. It's a way of organizing a bank so that they are only allowed to use your savings account money for safe and low-risk investments, like government bonds or very secure loans. This means they can't use that money to try risky investments that could lose all their value.

The idea is that if a bank only invests in very safe things with your savings, then even if the bank loses money in other parts of their business, your savings are still safe. It's kind of like how having different piggy banks helps you keep your money safe.

So, with narrow banking, you can feel more secure that your savings won't be lost if a bank takes risks or has financial trouble.