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Fractional Banking


  • Maria Klimikova

    (University of Economics)


Understanding the reasons of the present financial problems lies In understanding the substance of fractional reserve banking. The substance of fractional banking is in lending more money than the bankers have. Banking of partial reserves is an alternative form which links deposit banking and credit banking. Fractional banking is causing many unfavorable economic impacts in the worldwide system, specifically an inflation.

Suggested Citation

  • Maria Klimikova, 2010. "Fractional Banking," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 1(1), pages 171-178, May.
  • Handle: RePEc:pcz:journl:v:1:y:2010:i:1:p:171-178

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    References listed on IDEAS

    1. Jorge Martinez-Vazquez & Cristian Sepúlveda & Gabriel Leonardo & Benjamin Miller, 2006. "Intergovernmental Fiscal Relations in Romania: Challenges and Options for Reform," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0619, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    2. Tatiana Mosteanu & Carmen Maria Lacatus, 2008. "The Municipal Bonds – the Cause and the Effect of the Local Financial Decentralisation Growth. Romanian Case," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 9(9(526)), pages 51-60, September.
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    More about this item


    fractional banking; banking of partial reserves; Ponzi Scheme; Multiplication Effect;

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • G00 - Financial Economics - - General - - - General


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