system
Given the following post, respond as if you're commenting on Reddit:
human
Why aren't ordinary citizens allowed to borrow from the federal reserve?

Seems weird that with all the technology available that we even need middlemen to access loans? Wouldn't the economy be better off if we didn't have a system of banking that didn't have unnecessary middlemen taxing the system.
gpt
Banks arguable aren't just a middleman. The bank is what allocates capital efficiently.

The bank manages the credit risk. Without them. What is stopping me going to the central bank and asking for a billion pound, dollar, euro loan? Would the central bank have to decide who is likely to pay? And how would they model it, because defaulting on the central bank wouldn't matter so there's a real moral hazard there.