AFAIK, in modern fractional reserve banking the commercial banks enjoy a special privilege for the balance that they hold at their central bank account. The bal

AFAIK, in modern fractional reserve banking the commercial banks enjoy a special privilege for the balance that they hold at their central bank account. The balance at each bank's account is called its reserve, and for every euro the bank holds in reserve, it can actually lend out a far greater sum. Currently, for each euro at its central bank account, a commercial bank can lend out €100 to their clients (borrowers). (Interestingly, this extra money that the bank lends out materializes out of thin air.) So, the banks still have a great incentive to keep their money at their central bank account, because it's the only account that adds to their fractional reserve base.