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Fractional Banking

  • Maria Klimikova

    (University of Economics)

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    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.

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    Article provided by Czestochowa Technical University, Department of Management in its journal Polish Journal of Management Studies.

    Volume (Year): 1 (2010)
    Issue (Month): 1 (May)
    Pages: 171-178

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    Handle: RePEc:pcz:journl:v:1:y:2010:i:1:p:171-178
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