1. It keeps back a small'reserve'of say 10% of the money deposited with it ( in this case £100 ), and lends out the other £900 to somebody who needs a loan.

2. San Francisco-based Wells missed analyst earnings expectations for the first time in over two years, and two measures closely watched by investors—revenue, or the income a bank Accrues before expenses, and net interest margin, or the spread the bank earns between the funds it borrows and the money it lends out—declined from a year earlier.