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Old 11th November 2007, 11:01 AM
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Essential Reading for those trying to get their head around the Credit Crunch!

http://en.wikipedia.org/wiki/Fractional-reserve_banking

Note the 20% rate used is very high. China has just increased theirs to 13.5% to rein in inflation.

List of Reserve Requirements in various currency zones are given here, although these figure maybe out of date:

http://en.wikipedia.org/wiki/Reserve_requirement

The US has a reserve rate of 10% but many countries have no minimum reserve requirements at all. The consequences of this are discussed here:

http://wfhummel.cnchost.com/reservereqs.html
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Last edited by Rubber Duck; 11th November 2007 at 11:18 AM..
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