They're only required keep a fraction of deposits as reserves and can lend out the rest.
The money lent out is deposited back into the banking system, creating new deposits that can be loaned out again, this process repeats multiple times
They're only required keep a fraction of deposits as reserves and can lend out the rest.
The money lent out is deposited back into the banking system, creating new deposits that can be loaned out again, this process repeats multiple times