Скачать или смотреть Fractional Reserve Banking Explained: How Banks “Create” Money

Fractional reserve banking explained—fast, clear, and historically grounded. In this video, we break down what fractional reserve banking is, how it works in modern banking, and how it developed over time from early goldsmith banking and deposit receipts to today’s regulated financial system.

You’ll learn how banks can accept deposits, keep only a fraction of reserves (cash or central bank reserves), and lend the rest, which expands the effective money supply through credit creation and the money multiplier concept. We’ll also explain why this system exists: to support liquidity, economic growth, and financial intermediation—and why it can also create risks like bank runs, maturity transformation stress, and broader financial instability when trust breaks down.

On the history side, we trace the origins of fractional reserve practices through:

Goldsmiths and early banks issuing claims on deposits

The rise of commercial banking, central banking, and lender-of-last-resort ideas

The evolution of reserve requirements, deposit insurance, and modern bank regulation

How institutions like the Bank of England and later central banks shaped the system’s stability tools

By the end, you’ll understand the key terms—reserves, deposits, loans, balance sheets, capital requirements, liquidity, monetary policy, central bank reserves, interbank lending—and how fractional reserve banking connects to real-world topics like inflation, interest rates, credit cycles, and financial crises.

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