Finally, think about 100 percent book regulations?

Finally, think about 100 percent book regulations?

The Bundesbank paper notes the stress within the debate that is public you will find demands a 100 percent book system become imposed as an element of banking reform.

The claim is by limiting the credit creation capability of banking institutions (the reserve that is fractional noted above), the banking institutions will be more stable and there is less possibility of crisis.

So then stability would be enhanced if banks had to always have reserves equal to their loan book. Continue reading «Finally, think about 100 percent book regulations?»