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How can banks create money?

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Question added by FATEH BOUCHENE , institut d'emission , banque centrale d'algerie
Date Posted: 2017/06/30
hamoud AlHafy
by hamoud AlHafy , Director of Strategic Supply Management , Saudi Ministry of Human Resources & Development

create from depositor and its capital for start to investment by loan and other banking services such transfer fees & trade services(L.C...) 

KENFREY NYAGAH
by KENFREY NYAGAH , Office Manager , KENYA NATIONAL BUREAU OF STATISTICS

BANKS GRANTS LOANS ON INTEREST AND FEES CHARGED ON VARIOUS SERVICES GRANTED BY BANKS

Shittu Muritala
by Shittu Muritala , Banking Associate 2 , Polaris Bank

Banks  generate create by  financing large and small projects

FATEH BOUCHENE
by FATEH BOUCHENE , institut d'emission , banque centrale d'algerie

When a credit is granted, the bank creates the currency required for this credit by a simple set of writing in an accounting book2,3. This system is sometimes called the fractional reserve system.

ibrahim ellaithy
by ibrahim ellaithy , Head of Accounts and Director Operation, Maintenance and Cleanliness , Al - Sabaan Contracting Company

By facilitating loans and financing large and small projects

 

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