Reserve banking

Fractional Reserve Bank | Global Currency Online

What is Fractional Reserve Banking? Fractional reserve banking is a system in which only a fraction of financial institutions’ deposits are backed by real money that is available and ready to be withdrawn. This is done to theoretically expand the economic system by freeing up capital for lending. At present, the monetary methods of most […]

Reserve banking

Michael Barr approved to be the Federal Reserve’s banking regulator

All seven Fed board seats are now filled, for the first time in about a decade, as the central bank tackles the worst inflation in 40 years. WASHINGTON — The Senate easily endorsed Michael Barr as the Federal Reserve’s chief banking regulator in a bipartisan vote on Wednesday. Barr, a former top Treasury official under […]

Reserve banking

Is it time to explore an alternative to fractional-reserve banking?

By Nicholas Larseninternational banker Owhat happens to the money you deposit in a bank account? Does all this sit idle, earning interest? Or is it used to fund other purposes? According to a September 2019 study by bitcoin mining firm Genesis Mining of 1,000 US consumers, 26% of respondents believed that banks were required to […]

Reserve banking

Could Blockchain Technology Help End Fractional Reserve Banking? – OpEd – Eurasia Review

By Sammy Cartagena* Fractional reserve banking has existed throughout history, long before the creation of government currencies or central banks. Once money depositories realized that not all depositors would demand repayment simultaneously, the practice of lending out deposits in excess of reserves became common. This raises the question of how a system of full reserves […]

Reserve banking

Former Kentucky Bank CEO banned by Federal Reserve

A former bank CEO has been banned from taking on leadership roles in banking after being found guilty of acting improperly regarding a loan. Carolyn Flynn, former CEO of the Kentucky-based Community Financial Services Bank (CFSB), approved a loan of more than $90,000 to a family member and accessed customer information without authorization, according to […]

Reserve banking

Bitcoin’s viability in a full reserve banking scenario

Bitcoin is often seen as several things, ranging from a commodity to a currency, and even a solution to solving all financial problems in unbanked and underbanked regions. But very few people believe that Bitcoin has the potential to completely change reserve banking, freeing consumers from being enslaved to the banking ecosystem. While there are […]

Reserve banking

RESERVE BANKING – THE ELEPHANT IN THE ROOM

The phrase “elephant in the room“… “…an important or huge controversial topic, issue or subject that is obvious or that everyone knows about but no one mentions or wants to discuss because it makes at least some of them uncomfortable or is personally, socially or politically embarrassing, controversial, inflammatory, or dangerous. (The source) Let’s start […]

Reserve banking

Stablecoins are the crypto version of fractional reserve banking – op-ed bitcoin news

Stablecoins offer much sought-after stability in volatile crypto markets. It is sometimes even said that they affect the price of bitcoin drastically. Attached (USDT). However, it is more important to delve into the reality that some stablecoins are bad for bitcoin adoption. A sort of fractional reserve bank 2.0. Also Read: Tron-Based Tether Inflated To […]

Reserve banking

Mastercard patent claims cryptocurrency can benefit fractional reserve banking

U.S. multinational financial services firm Mastercard wants to apply fractional reserve banking principles to cryptocurrency, news patent application released Thursday, October 25 reveals. According to the document, released by the United States Patent and Trademark Office (USPTO), the payment processor plans to allow merchants to interact with what it calls “blockchain currencies” via a new […]

Reserve banking

Does fractional reserve banking endanger the economy? A debate

On April 16, 2018, two free-market economists debated a topic that has long divided libertarians. Fractional Reserve Bank refers to the common practice of banks to hold only part of their depositors’ money and lend out the rest. In The mystery of the bank (1983), anarcho-capitalist economist Murray Rothbard called fractional reserve banking “a shell […]

Reserve banking

‘Money, The Unauthorized Biography’, by Felix Martin, supports the full reserve bank.

After spending about ten years, a great deal of time and money, advocating for a full reserve, I am delighted to see that the above book, which was the Financial Times Economics Book of the Year in 2013, also supports the idea. However, arguing for a total reserve is not the central aim of the […]

Reserve banking

What Christians Should Know About Fractional Reserve Banking – Acton Institute PowerBlog

Note: This is the latest entry in the Acton blogging series, “What Christians Should Know About the Economy”. For other entries in the series, see this post. The term: Fractional reserve bank What this means: Understanding fractional reserve banking is easier if we separate what it is (which is quite simple to explain) and the […]

Reserve banking

Vollgeld: what this means for fractional reserve banking in Switzerland

The success of any business can only be measured by what one is trying to accomplish. If the Vollgeld initiative aims to create a stable and healthy economy in Switzerland, it will be a miserable failure. However, if Vollgeld’s supporters aim for firmer government control, it could very well serve the purpose. My colleague Jason […]

Reserve banking

Is this the end of fractional reserve banking?

Vollgeld “Full Money Initiative” of Switzerland I can pretty much guarantee you that the biggest story that isn’t covered by the mainstream business press right now is that Switzerland to hold referendum to consider ending fractional reserve banking (!). Yes, you read that right. This paragon of the banking sector votes on the advisability of […]

Reserve banking

P2P as a full reserve bank | Financial Time

FT Alphaville had the pleasure of moderating the “Future of Banking” sign at OuishareFest, a collaborative economy gathering, earlier this month. During this discussion, an interesting point was raised by François Carbone, CEO of an equity crowdfunding company. Anaxago. Namely, when you think about it, every peer-to-peer (P2P) initiative proposed today is truly representative of […]

Reserve banking

Full bank reserve | openDemocracy

From Irish woes to student protests, the grim fallout from the banking crisis once again dominated the news this month. But behind the scenes, a radical solution has also quietly gained traction, with growing support from a few unlikely bedfellows. Conservative MPs, leftist and libertarian think tanks and even Muslim Shariah bankers have lent their […]