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Fractional reserve requirements limit the amount of loans a bank can make relative to its deposits.
by adamsb6 4y ago
Fractional reserve requirements limit the amount of loans a bank can make relative to its deposits.
- amanaplanacanal 4y agoThat only works if the requirement is above zero. Which it isn’t.
- iamdamian 4y agoAre there still fractional reserve requirements in the U.S.?
- MR4D 4y agoNo. https://www.federalreserve.gov/monetarypolicy/reservereq.htm https://www.federalreserve.gov/monetarypolicy/reservereq.htm
- JumpCrisscross 4y ago> reserve requirements limit the amount of loans a bank can make relative to its deposits Reserve requirements haven’t restricted lending for decades. It’s why they’re zero in most of the world, replaced by finer-tuned capital and liquidity requirements. (And deposits != reserves.)