How to Make a Run-Proof Bank: Achieving Maturity Transformation Without Fractional Reserves

2013 ◽  
Author(s):  
Andrew D. Smith
Keyword(s):  
Fractional Reserves

scholarly journals Commercial Bank Money, Seigniorage, and the Macroeconomy

2018 ◽  
Author(s):  
Biagio Bossone
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Equilibrium Prices ◽  
Different Types ◽  
Money Creation ◽  
Fractional Reserves ◽  
Macroeconomic Implications ◽  
The Impact ◽  
The Relationship ◽  
Bank Money

This article evaluates the macroeconomic implications of commercial bank seigniorage, which emerges from the commercial banks’ power to create money in a fractional reserves regime. After evaluating the impact on aggregate output of commercial bank money relative to alternative exchange arrangements, the article identifies the determinants of commercial bank seigniorage and analyzes how equilibrium prices are determined in an economy where commercial banks extract seigniorage. The article also identifies the conditions under which commercial banks extract seigniorage, clarifies the relationship between seigniorage from commercial bank money creation and profits from pure financial intermediation, and shows how commercial bank seigniorage changes with different types of interbank payments settlement.

Competitive Banking with Fractional Reserves and Regulations

1991 ◽  
pp. 241-265 ◽  
Author(s):  
Benjamin Bental ◽  
Zvi Eckstein ◽  
Dan Peled
Keyword(s):  
Fractional Reserves
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