Overview

fractional banking


Show Summary Details

Quick Reference

A practice that some governments and central banks impose on their banks, requiring for a fixed fraction between cash reserves and total liabilities. If the monetary authorities increase the ratio of reserves to deposits, this indicates a tighter credit policy. See monetary policy.

Subjects: Financial Institutions and Services.


Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.