Fractional reserve banking: Difference between revisions
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imported>Doug Williamson (Create the page. Source: The Treasurer, May 2015, p15, Jeremy Warner.) |
imported>Doug Williamson (Clarify.) |
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''Banking''. | ''Banking''. | ||
A required minimum ratio of vault cash and balances ('[[reserves]]') with the [[central bank]] to deposits taken by the bank that the central bank requires commercial banks to hold, where the ratio is less than 100%. | A required minimum ratio of vault cash and balances ('[[reserves]]') with the [[central bank]] to deposits taken by the bank that the central bank requires commercial banks to hold, where the required ratio is less than 100%. | ||
This is the usual situation. | This is the usual situation. | ||
Revision as of 13:07, 8 May 2015
Banking.
A required minimum ratio of vault cash and balances ('reserves') with the central bank to deposits taken by the bank that the central bank requires commercial banks to hold, where the required ratio is less than 100%.
This is the usual situation.
