Complex sentence: This practice, known as fractional reserve banking supports the total of such credit to exceed the liquid legal reserves of the bank, up to a ratio deemed adequate by government regulators to ensure the ability of banks to meet their payment obligations.
Split into simpler sentences: This practice, which is known as fractional reserve banking, permits the total supply of credit to exceed the liquid legal reserves of the bank. The amount of this excess is expressed as the "reserve ratio" and is limited by government regulators not to exceed a level which they deem adequate to ensure the ability of banks to meet their payment obligations.