Accession Number:

AD0671919

Title:

CREDIT EXPANSION IN A MULTIBANK SYSTEM,

Descriptive Note:

Corporate Author:

RAND CORP SANTA MONICA CALIF

Personal Author(s):

Report Date:

1968-06-01

Pagination or Media Count:

22.0

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

Subject Categories:

  • Economics and Cost Analysis
  • Operations Research

Distribution Statement:

APPROVED FOR PUBLIC RELEASE