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Tuesday, 29 July 2014

Reserve Ratios of U.S. Depository Institutions - Better, But Still Very Fractional

One thing that has improved in the aftermath of the 2008 U.S. banking crisis is that reserve ratios of U.S. depository institutions have improved significantly. However, depository institutions remain highly leveraged, the trademark of a fractional reserve banking system, as it has improved compared to a very poor starting point. 

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