Fractional Reserve Banking

Business, Legal & Accounting Glossary

Definition: Fractional Reserve Banking


Fractional Reserve Banking

Quick Summary of Fractional Reserve Banking


A banking system in which only a fraction of the total deposits managed by a bank must be kept in reserve. The amount of the deposits equals the amount of the reserves times the deposit multiplier. In the U.S., this system is maintained by the Federal Reserve Board.



Video Guide For Fractional Reserve Banking




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Definition Sources


Definitions for Fractional Reserve Banking are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 22nd November, 2021 | 0 Views.