Fractional Reserve Banking

Bank Money
Bank money refers to the currency created by commercial banks through the process of lending, utilizing the deposits they receive under a fractional reserve banking system.
Fractional Reserve Banking
Fractional reserve banking is a regulation in the banking industry whereby banks (and other similar institutions) keep reserves that are less than their total deposits.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.