fractional reserve banking

== English == === Noun === fractional reserve banking (uncountable) (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 ==== === Further reading === Bank reserves on Wikipedia.Wikipedia fractional reserve banking on Wikipedia.Wikipedia “fractional reserve banking”, in OneLook Dictionary Search.