We don’t call bank deposit accounts ‘bank debt’. Nor do we say banks must do everything that they can to repay those deposit accounts as soon as they possibly can.
Actually, we do. As Matt Ridley would be happy to explain when someone asks him about Northern Rock. Deposit accounts* are debt repayable on demand. And if you, as a bank, don’t so repay when asked you’re bust. As, err, Northern Rock found out.
You can even be solvent but illiquid and go bust…….
*OK, there are some that aren’t, term deposits, but the vast majority are.