What You Need To Know About the Fractional Reserve System?Kehinde LAWAL
Fractional reserve is a banking system that allows commercial banks to profit by loaning part of their customers’ deposits, while just a small fraction of these deposits are stored as real cash and available for withdrawal. Practically speaking, this banking system creates money out of nothing using a percentage of their customers’ bank deposits.
How does it work?
Advantages and Disadvantages of Fractional Reserve Banking
Fractional Reserve Banking and Cryptocurrency
This article originally appeared on Binance Academy