fractional reserve banking

English

Noun

fractional reserve banking (uncountable)

1. (finance, chiefly banking) A widespread banking system in which a bank that accepts deposits from the public puts the majority of those deposits into investments (generating a profit for the bank) as opposed to keeping them all in reserve (i.e., directly on hand); the system assumes that it is unlikely that every customer would need to withdraw their money at the same time (i.e., a bank run).

Translations

mode of banking

• Chinese:

  Mandarin: 部分準備金銀行制度／部分准备金银行制度 (bùfen zhǔnbèijīn yínháng zhìdù)

• Danish: please add this translation if you can
• Finnish: vähimmäisvarantojärjestelmä
• German: Mindestreserve-System n
• Italian: please add this translation if you can
• Polish: bankowość rezerwy cząstkowej f, system rezerwy cząstkowej m
• Portuguese: reserva fracionária f

Further reading

• Bank reserves on Wikipedia.Wikipedia
• fractional reserve banking on Wikipedia.Wikipedia
• “fractional reserve banking”, in OneLook Dictionary Search.