fractional reserve banking (English, noun)
expansion: fractional reserve banking (uncountable)
Senses:
topics: banking
business
finance
glosses: 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).
tags: uncountable
Forms: