100% reserve banking: Difference between revisions
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''Banking''. | ''Banking''. | ||
The maximum ratio of vault cash and balances ('[[reserves]]') with the [[central bank]] to deposits taken by the bank that the central bank could require commercial banks to hold. | The theoretical maximum ratio of vault cash and balances ('[[reserves]]') with the [[central bank]] to deposits taken by the bank that the central bank could require commercial banks to hold. | ||
Such a 100% ratio would be unusual. | |||
== See also == | == See also == | ||
* [[Fractional reserve banking]] | |||
* [[Monetary policy]] | * [[Monetary policy]] | ||
* [[Reserve requirements]] | * [[Reserve requirements]] | ||
[[Category:Financial_management]] | |||
Latest revision as of 09:38, 22 February 2018
Banking.
The theoretical maximum ratio of vault cash and balances ('reserves') with the central bank to deposits taken by the bank that the central bank could require commercial banks to hold.
Such a 100% ratio would be unusual.
