CREDIT EXPANSION IN A MULTIBANK SYSTEM,
Abstract
The paper presents a model of the banking system that relates system credit expansion to individual bank borrowing and lending decisions. It is shown that credit expansion in a multibank system depends significantly on the manner in which interbank reserve transfers take place and on the manner in which individual banks react to changes in their reserve position. By relying on some reasonable assumptions about individual bank behavior, the effects on total deposits of introducing new reserves in a multibank system are illustrated. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 1968
- Accession Number
- AD0671919
Entities
People
- I. N. Fisher
Organizations
- RAND Corporation