RE: The Mathematics of Fractional Reserve Banking

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The Mathematics of Fractional Reserve Banking

in mathematics •  7 years ago 

This is quite old fashioned, modern banks are much more constrained by capital requirements than liquidity ones. That's what caps lending. As long as it's solvent, a bank can just keep issuing deposits without going through this process

See my blog post for more information -
https://steemit.com/finance/@gleepower/the-definition-of-a-bank

mathematics
7 years ago by

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