Fractional reserve banking

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Revision as of 10:01, 8 May 2015 by imported>Doug Williamson (Create the page. Source: The Treasurer, May 2015, p15, Jeremy Warner.)
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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%.

This is the usual situation.


See also