100% reserve banking: Difference between revisions
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imported>Doug Williamson (Note that 100% reserve banking would be unusual.) |
imported>Doug Williamson (Clarify that 'this' means a 100% ratio.) |
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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. | 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. | |||
Revision as of 10:16, 8 May 2015
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.
